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    Does Reducing Unemployment Benefits During a Recession Reduce Youth Unemployment? Evidence from a 50% Cut in Unemployment Assistance


    Doris, Aedin and O'Neill, Donal and Sweetman, Olive (2017) Does Reducing Unemployment Benefits During a Recession Reduce Youth Unemployment? Evidence from a 50% Cut in Unemployment Assistance. Working Paper. UNSPECIFIED. (Unpublished)

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    Abstract

    We use administrative data to examine the effect of a 50% benefit cut for young unemployed workers in Ireland during the Great Recession. Because the cut applied only to new benefit claims, claimants whose unemployment start dates differed by a matter of days received very different benefits; we exploit this fact in our Regression Discontinuity and Difference-in-Difference analyses. While we find no impact on unemployment duration for those aged 20-21, the benefit cut significantly reduced duration for 18 year olds, with an estimated elasticity close to one. We consider possible explanations for our findings and also examine long-run effects

    Item Type: Monograph (Working Paper)
    Keywords: Reducing Unemployment Benefits; Recession; Youth Unemployment; Evidence; Unemployment Assistance;
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 10118
    Identification Number: N279-17
    Depositing User: Olive Sweetman
    Date Deposited: 18 Oct 2018 14:25
    URI:

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