Welfare Sanctions and Deprivation in Germany : Do First Sanctions Lead to Higher Levels of Deprivation Among the Long-Term Unemployed and Recipients of Basic Income Support?





Faculty/Professorship: Methods of Empirical Social Research  
Author(s): Löwe, Paul  ; Unger, Stefanie Alexandra
Title of the Journal: Journal of social policy : the journal of the Social Policy Association
ISSN: 0047-2794
Publisher Information: Cambridge : Cambridge Univ. Press
Year of publication: 2022
Issue: Published online: 13 January 2022
Pages: 1-19
Language(s): German
DOI: 10.1017/S0047279421000994
Abstract: 
In Germany, as in many other European countries, vast changes in the welfare regime – towards workfare – have taken place. As a central activating element of workfare, sanctions were introduced to take effect by temporarily increasing deprivation through benefit cuts. This paper provides first quantitative insights on the effect of first sanctions on deprivation and contributes to the recent debate on the (un)constitutionality of sanctions, which re-emerged after a verdict of the Federal Constitutional Court, criticizing the lack of knowledge about the effects of sanctions on those affected. We implement a difference-in-differences propensity score matching approach that addresses selection on observables and individual time constant unobserved differences. High data accuracy is ensured by combining the “Panel Labour Market and Social Security” (PASS) with administrative data from the Federal Employment Agency. The results illustrate a slightly higher yet statistically insignificant level of deprivation for first-sanctioned unemployment/basic income recipients compared to non-sanctioned recipients. The results hint in the direction that higher levels of deprivation are not what activates the sanctioned beneficiaries to reintegrate into the labour market. We discuss whether the results imply a significant deviation from the socio-cultural subsistence minimum of sanctioned recipients and a failure of the welfare state
GND Keywords: Deutschland; Arbeitslosengeld II; Sanktion; Langzeitarbeitsloser; Soziale Deprivation
Keywords: Sanction, Deprivation, Poverty, Welfare State, Active Labour Market Policies, Difference-in-differences Propsensity Score Matching
DDC Classification: 300 Social sciences, sociology & anthropology  
RVK Classification: MS 5350   
Peer Reviewed: Ja
International Distribution: Ja
Type: Article
URI: https://fis.uni-bamberg.de/handle/uniba/52904
Release Date: 17. January 2022