Age Discontinuity and Nonemployment Benefit Policy Evaluation Through the Lens of Job Search Theory

B-Tier
Journal: International Economic Review
Year: 2025
Volume: 66
Issue: 1
Pages: 259-286

Authors (2)

Bruno Decreuse (not in RePEc) Guillaume Wilemme (Leicester University)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Recent papers use regression discontinuity designs (RDDs) based on age discontinuity to evaluate social assistance (SA) and unemployment insurance (UI) extension policies. Job search theory predicts that such designs generate biased estimates of the policy‐relevant treatment effect. Owing to market frictions, people below the age threshold modify their search behavior in expectation of future eligibility. We use a job search model to quantify the biases on various datasets in the literature. The impacts of SA benefits on employment are underestimated, whereas those of UI extensions on nonemployment duration are overestimated. The article provides insights for RDD evaluations of age‐discontinuous policies.

Technical Details

RePEc Handle
repec:wly:iecrev:v:66:y:2025:i:1:p:259-286
Journal Field
General
Author Count
2
Added to Database
2026-01-29