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Titel
Does reducing unemployment benefits during a recession reduce youth unemployment? : evidence from a 50% cut in unemployment assistance / Aedín Doris (Maynooth University), Donal ONeill (Maynooth University and IZA), Olive Sweetman (Maynooth University) ; IZA, Institute of Labor Economics
VerfasserDoris, Aedín ; O'Neill, Donal ; Sweetman, Olive B.
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, April 2017
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Elektronische Ressource
Umfang1 Online-Ressource (38 Seiten) : Diagramme
SerieDiscussion paper ; no. 10727
URNurn:nbn:de:hbz:5:2-122093 
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 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Volltexte
Does reducing unemployment benefits during a recession reduce youth unemployment? [1.16 mb]
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Zusammenfassung

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.

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