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| Author: | Bargain, O. Doorley, K. |
| Title: | Caught in the trap? Welfare's disincentive and the labor supply of single men |
| Journal: | Journal of Public Economics
2011 : OCT, VOL 95: 9-10, p.1096-1110 |
| Index terms: | welfare labour supply social security France |
| Freeterms: | regression discontinuity |
| Language: | eng |
| Abstract: | Youth unemployment is especially large in many industrialized countries and has dramatic results in both the short and long-term. While there is clear evidence about the labor supply of married women and single mothers, not much is known of how young childless singles react to financial incentives. The French minimum income (RMI), often accused of creating strong disincentives to work, offers an opportunity to study this question as childless singles, primarily males, constitute the core group of recipients. Exploiting the fact that childless adults under age 25 are not eligible for this program, a regression discontinuity analysis is conducted using French Census data. We find that the RMI reduces the attendance of uneducated single men by 710% at age 25. We conduct an extensive robustness check and explore the implications of our results for youth unemployment and current policy developments. |
SCIMA