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| Tekijä: | Petrongolo, B. |
| Otsikko: | The long-term effects of job search requirements: Evidence from the UK JSA reform |
| Lehti: | Journal of Public Economics
2009 : DEC, VOL. 93:11-12, p. 1234-1253 |
| Asiasana: | United Kingdom social security job search unemployment compensation earnings |
| Kieli: | eng |
| Tiivistelmä: | This paper examines long-term returns from unemployment compensation, exploiting variation from the UK JSA reform of 1996, implying a major increase in job search requirements for eligibility and in the related administrative hurdle. Longitudinal data from social security records (LLMDB) is used for testing. Using a difference-in-differences approach, it is found that individuals starting an unemployment spell soon after Jobseekers' Allowance (JSA) introduction, as opposed to 6 months earlier, are 2.5-3 percent more likely to move from unemployment into Incapacity Benefits spells, and 4-5 percent less likely to have positive earnings in the following year. This latter employment effect only disappears four years after the initial unemployment shock. The results suggest that while tighter search requirements were successful in moving individuals off unemployment benefits, they were not successful in moving them onto better or stable jobs, with fairly long-lasting unintended consequences on a number of labour market outcomes. |
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