Suggestions(1)
Exact(19)
For example, 5.91% of the non-sanctioned persons who are registered at agencies that do not follow a tough sanction strategy (Z1 = 0) have left the welfare system for employment one month after the (hypothetical) sanction date.
Z1 refers to the sanction strategy of welfare agencies.
The instrument Z1 (sanction strategy) has a significantly positive effect on the sanction probability.
The welfare agency's sanction strategy is not communicated to its clients.
In particular, we have access to survey information on the sanction strategy that is used in the respective welfare agency.
Therefore, the sanction strategy influences caseworkers' actions and, consequently, creates variation in the use of sanctions across welfare agencies.
Similar(41)
It will be interesting to see how their sanction strategies develop in future programmes.
Sanction strategies.
The middle part of Table 3 clearly shows that agencies with different sanction strategies are quite similar with respect to the composition of their clients.
We use these differences in sanction strategies and rates across 154 welfare agencies in Germany as instrumental variables to estimate the effect of a benefit cut on the individual employment probability.
If UBII recipients were aware of the sanction strategies of the agencies, the only way to avoid a tough sanction regime for a (non-cooperative) person registered at an agency that frequently imposes sanctions would be to move to another region, since individuals are forced to register with the agency at the place of residence.
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