Examining the Effects of Zero‐Dollar Unemployment Payment Sanctions

Andrew Wright; Brian Dollery; Michael Kortt; Shawn Leu

doi:10.1111/1475-4932.12566

Examining the Effects of Zero‐Dollar Unemployment Payment Sanctions

Andrew Wright, Brian Dollery, Michael Kortt Shawn Leu

The Economic Record, Vol.96(315), pp.490-505

11/08/2020

: https://doi.org/10.1111/1475-4932.12566

(1)

url

Examining the effects of zero-dollar unemployment payment sanctions

Published (Version of record)

research.portal.fulldisplay.sdgs.intro

research.portal.fulldisplay.sdgs.source

Applied Economics

Policy and Administration

Consumption

Existing evidence has demonstrated that sanctions affect unemployment payment recipients’ behaviour. However, in addition to financial impacts, sanction application includes administrative processes. This study examines a feature of Australian unemployment benefits, whereby jobseekers not meeting requirements may face a zero‐dollar sanction (termed suspension). The results indicate a strong behavioural response, with previously suspended jobseekers 13.1 percentage points more likely to attend their next appointment. Further, ongoing behavioural change was observed, even for jobseekers with a history of previous non‐compliance. This suggests temporary payment suspension and associated administrative processes are effective at securing behavioural change, without the need for lasting financial impact.

: Examining the Effects of Zero‐Dollar Unemployment Payment Sanctions
: Andrew Wright (Corresponding Author) - University of New England
Brian Dollery - University of New England
Michael Kortt - Southern Cross University
Shawn Leu - University of New England
: The Economic Record, Vol.96(315), pp.490-505
: Wiley
: 991012878300102368
: School of Business and Tourism; Management; Faculty of Business, Law and Arts
: English
: Journal article