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O'Neill, Donal, Doris, Aedin and Sweetman, Olive (2017) Does Reducing Unemployment Benefits During a Recession Reduce Youth Unemployment? Evidence from a 50% Cut in Unemployment Assistance. IZA Discussion Papers, 10727. ISSN 2365-9793
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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: | Article |
|---|---|
| Keywords: | unemployment assistance; labour supply; regression discontinuity; Unemployment: Models, Duration, Incidence, and Job Search; |
| Academic Unit: | Faculty of Social Sciences > Economics, Finance and Accounting |
| Item ID: | 11368 |
| Depositing User: | Donal O'Neill |
| Date Deposited: | 18 Oct 2019 09:42 |
| Journal or Publication Title: | IZA Discussion Papers |
| Publisher: | Institute of Labor Economics |
| Refereed: | Yes |
| Related URLs: | |
| URI: | https://mural.maynoothuniversity.ie/id/eprint/11368 |
| Use Licence: | This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here |
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