Does Reducing Unemployment Benefits during a Recession Reduce Youth Unemployment?: Evidence from a 50 Percent Cut in Unemployment Assistance

Aedín Doris, Donal O’Neill and Olive Sweetman
Authors registered in the RePEc Author Service: Donal O'Neill

Journal of Human Resources, 2020, vol. 55, issue 3, 902-925

Abstract: We use administrative data to examine the effect of a 50 percent benefit cut for young unemployed claimants in Ireland during the Great Recession. Because the cut applied only to new spells, claimants whose unemployment start dates differed by one day received very different benefits; we exploit this feature in a regression discontinuity analysis. We find that the benefit cut significantly reduced unemployment duration, with exits to training and work accounting for the majority of this effect.

JEL-codes: J64 J65 J68 (search for similar items in EconPapers)
Date: 2020
Note: DOI: 10.3368/jhr.55.4.0518-9501R1
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:55:y:2020:i:3:p:902-925

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