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Losing Prospective Entitlement to Unemployment Benefits. Impact on Educational Attainment

Bart Cockx, Koen Declercq and Muriel Dejemeppe

No 2022015, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: Providing income support to unemployed education-leavers reduces the returns to investments in education because it makes the consequences of unemployment less severe. We evaluate a two-part policy reform in Belgium to study whether conditioning the prospective entitlement to unemployment benefits for education-leavers on age or schooling attainment can affect educational achievements. The results show that the prospect of financial loss in case of unemployment can significantly raise degree completion and reduce dropout in higher education, but not in high school. We argue that the higher prevalence of behavioral biases among lower educated and younger students could explain these contrasting findings.

Keywords: Unemployment insurance; conditionality; degree completion; school dropout; behavioral biases (search for similar items in EconPapers)
JEL-codes: H52 I21 I26 I28 J08 J18 J24 J65 J68 (search for similar items in EconPapers)
Date: 2022-07-08
New Economics Papers: this item is included in nep-eur and nep-lab
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Related works:
Working Paper: Losing Prospective Entitlement to Unemployment Benefits. Impact on Educational Attainment (2022) Downloads
Working Paper: Losing Prospective Entitlement to Unemployment Benefits. Impact on Educational Attainment (2022) Downloads
Working Paper: Losing prospective entitlement to unemployment benefits. Impact on educational attainment (2022) Downloads
Working Paper: Losing Prospective Entitlement to Unemployment Benefits. Impact on Educational Attainment (2022) Downloads
Working Paper: Losing prospective entitlement to unemployment benefits. Impact on educational attainment (2022) Downloads
Working Paper: Losing prospective entitlement to unemployment benefits. Impact on educational attainment (2022) Downloads
Working Paper: Losing Prospective Entitlement to Unemployment Benefits. Impact on Educational Attainment (2022) Downloads
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