Patrick Arni, Rafael Lalive, Gerard Van den Berg, 11 January 2016

The standard empirical evaluations of labour market policy only consider the direct effects of single programmes on their participants. This column argues that this fails to capture important aspects of real-world labour market policy – policy regimes and strategies. Using Swiss data, it employs a novel empirical approach that concurrently examines the effects of supportive and punitive policies (‘carrots’ and ‘sticks’). Policy regimes are shown to exert economically relevant effects, and accounting for these effects is crucial when designing labour market policy.

Markus Pannenberg, 09 August 2007

Empirically, the German unemployed – unlike others in Europe – do not respond to temporary sanctions on their unemployment benefits. Recent research suggests that the effectiveness of such sanction depends on attitudes towards risk. This may explain why benefit sanctions work in some countries but not in others.

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