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

A-Tier
Journal: Journal of Human Resources
Year: 2020
Volume: 55
Issue: 3

Authors (3)

Aedín Doris (not in RePEc) Donal O’Neill (not in RePEc) Olive Sweetman (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

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.

Technical Details

RePEc Handle
repec:uwp:jhriss:v:55:y:2020:i:3:p:902-925
Journal Field
Labor
Author Count
3
Added to Database
2026-01-25