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The effect of sanctions in unemployment insurance on re-employment and poverty

Research project SO/04/028 (Research action SO)

Persons :

Description :

On an international comparative scale, Belgium is characterised by its low rate of employment, high dependency on unemployment benefit and persistent, long-term unemployment. These observations raise the question of the potential negative effects that extensive social security provision has on people looking for and accepting a job. In this respect, we are thinking at the effect of unemployment traps and of Belgium’s relatively passive benefits that are subject to a (limited) control and activation policy.

The study is designed to provide an empirical assessment of the impact that limiting unemployment benefit through sanctions has on employment chances and on the income, prosperity and poverty of sanctioned unemployed persons or those whose benefit is suspended.

This study question divides up into different subtopics:

1. Direct and indirect effects of sanctions on the income and poverty of sanctioned persons (distribution effects) combined with transitions within the labour market (behaviour effects) stemming from the sanction.

2. Opportunities in the labour market for sanctioned persons, expressed in terms of re-entry opportunities and the duration of re-entering work, need to be addressed from both the sociological and economic standpoints. In economic terms, attention will be steered in the direction of the quantity of flows moving out of unemployment, and an unbiased assessment tool will be sought in order to gauge the influence of sanctions on re-entry into work.

3. At the same time, transitions within the labour market lead to the question of the working careers of sanctioned and non-sanctioned parties, i.e. the quality of the of unemployment outflow. Here, the study will verify whether talk is justified of unstable careers on low pay, job insecurity and ‘stop-go’ careers.

4. The job-search behaviour of the long-term unemployed varies drastically. It is reasonable to assume that assorted factors play a role in this, such as income (and poverty), looking after children and attitudes towards work. A model will be targeted to explain these behaviours of unemployed job-seekers.

5. What role does poverty play in how unemployment is experienced at a time when socio-psychological reactions to not being in work and conceptions of social utility differ strongly? The aim is to produce a typology around the perception of unemployment.

This collaboration effort between the Centrum voor Sociaal Beleid (CSB) and the Institut de Recherches économiques et sociales (IRES) will pursue integration between the economic and sociological standpoints during various study phases (literature study, descriptive and causal analyses).

An existing database containing data from a survey involving 1,838 sanctioned unemployed persons and 882 non-sanctioned unemployed persons (control group) forms the empirical basis for this study. Data collection took place in 1998 at the request of RVA (the Flemish equivalent of FOREM) and OSTC (cf. De Lathouwer, L., Bogaerts, K., (2000), Schorsingsbeleid in the werkloosheidsverzekering en herintrede op the arbeidsmarkt. Antwerp, UFSIA, 150p.). At the same time, we shall also be using data from the “datawarehouse” of KBSZ/BCSS (Kruispiuntbank/Banque Carrefour).

Documentation :

De impact van schorsing Artikel 80 in de werkloosheidsverzekering op herintrede en armoede : einrapport = L'impact de la suspension Article 80 dans l'assurance-chômage sur la réinsertion et la pauvreté : rapport final  De Lathouwer, Lieve - Cockx, Bart - Bogaerts, Kristel ... at al  Gent : Academia Press, 2003 (PB6009)

Une évaluation de la suspension Article 80 dans l'assurance chômage sur la réinsertion et la pauvreté : résumé    Bruxelles : Politique scientifique fédérale, 2003 (SP1226)
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De impact van schorsing Artikel 80 in de werkloosheidsverzekering op herintrede en armoede : samanvatting    Brussel : Federaal wetenschapsbeleid, 2003 (SP1227)
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An evaluation of the suspension measure Article 80 in unemployment insurance on re-entry and poverty (Part I) : summary    Brussels : Belgian Science Policy, 2006 (SP1612)
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Bibliografic references :

De impact van schorsing artikel 80 in de werkloosheidsverzekering op herintrede en armoede.  DE LATHOUWER L. e.a., Gent, Academia Press,, 2003 

Het oneigenlijk gebruik van de werkloosheidsuitkering als zorguitkering: een evaluatie van de impact van schorsing op herintredegedrag van werkloze vrouwen in België.  DE LATHOUWER L., BOGAERTS K. In: Diversiteit in levenslopen: consequenties voor de arbeidsmarkt / van den Heuvel Nick [edit.], e.a., 's-Gravenhage, Reed Business Information,, 2003 

Schorsing artikel 80 gewikt en gewogen: een evaluatie vanuit herintrede, behoefte en verzekeringsperspectief.  DE LATHOUWER L., BOGAERTS K., VAN DEN BOSCH K. Antwerpen, - 49 p. . - (Berichten / UFSIA, Centrum voor Sociaal Beleid ; 2003:4), 2003 

Werk meer lonend maken: nieuwe inkomensarrangementen in de passieve welvaartsstaat.  DE LATHOUWER LIEVE, BOGAERTS KRISTEL Over-werk: tijdschrift van het Steunpunt WAV, 3, 2003