Abstract

This project is concerned with benefit sanctions after a comprehensive reform of the basic income support in Germany that came into force at the beginning of 2023. Most benefit sanctions due to infringements against benefit rules became less strict due to this reform. For a period after the reform, we will describe the probability of receiving a benefit sanction of different types and - provided data will become available - of being informed about the legal consequences of infringements. This analysis will distinguish between different groups of benefit recipients (e.g. by region and gender). We will also analyse the individual determinants of receiving a benefit sanction and of being informed about the legal consequences of infringements. Moreover, we will analyse the effects of benefit sanctions and of being informed about the legal consequences of infringements on employment outcomes. Such analyses will also be carried out for special sanction rules (Article 31a paragraph 7 Social Code II) that were introduced in April 2024 implying relatively high benefit reductions that apply when benefit recipients refuse a job offer provided that they were already sanctioned for specific reasons during the last year. Moreover, with a difference-in-difference approach we will study reform effects as the reform of 2023 implies the same sanction rules for benefit recipients aged less than 25 years and those who are at least 25 years old. This was different in periods before November 2019, which we will exploit in our analysis.