Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

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

Abstract : A recent strand of papers use sharp regression discontinuity designs (RDD) based on age discontinuity to study the impacts of minimum income and unemployment insurance benefit extension policies. This design challenges job search theory, which predicts that such RDD estimates are biased. Owing to market frictions, people below the age threshold account for future eligibility to the policy. This progressively affects their search outcomes as they get closer to entitlement. Comparing them to eligible people leads to biased estimates because both groups of workers are actually treated. We provide a nonstationary job search model and quantify the theoretical biases on the datasets used in the literature. Our results suggest that the employment impact of minimum income policies are (significantly) under-estimated, whereas the impacts of benefit extensions on nonemployment duration are (not significantly) over-estimated.
Document type :
Preprints, Working Papers, ...
Complete list of metadatas

Cited literature [24 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-02072800
Contributor : Charles Lai Tong <>
Submitted on : Tuesday, March 19, 2019 - 2:27:14 PM
Last modification on : Wednesday, August 5, 2020 - 3:13:59 AM
Long-term archiving on: : Thursday, June 20, 2019 - 2:25:22 PM

File

WP 2019 - Nr 11.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-02072800, version 1

Collections

Citation

Bruno Decreuse, Guillaume Wilemme. Age Discontinuity and Nonemployment Benefit Policy Evaluation through the Lens of Job Search Theory. 2019. ⟨halshs-02072800⟩

Share

Metrics

Record views

62

Files downloads

91