RT Journal Article
SR Electronic
T1 Does Reducing Unemployment Benefits During a Recession Reduce Youth Unemployment? Evidence from a 50 Percent Cut in Unemployment Assistance
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 0518-9501R1
DO 10.3368/jhr.55.4.0518-9501R1
A1 Doris, Aedín
A1 O’Neill, Donal
A1 Sweetman, Olive
YR 2018
UL http://jhr.uwpress.org/content/early/2018/10/11/jhr.55.4.0518-9501R1.abstract
AB 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 our 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.