BRINGING THEM IN OR PUSHING THEM OUT? THE LABOR MARKETEFFECTS OF PRO-CYCLICAL UNEMPLOYMENT ASSISTANCE CHANGES

• 成果类型: Article
• 署名作者: Domenech-Arumi, Gerard; Vannutelli, Silvia
• 署名单位: Universite Libre de Bruxelles; Northwestern University; National Bureau of Economic Research
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_01310
• 发表日期: 2025-03
• 页码: 324-337
• 关键词: job search; regression discontinuity; disability insurance; financial incentives; duration dependence; benefits

摘要

wE exploit an unanticipated labor market reform to estimate the effects of procyclical changes in long-term unemployment assistance (UA). In July 2012, Spain raised the minimum age to receive unlimited- duration UA from 52 to 55. Using a difference-in-differences design, we document that shorter benefits caused (1) shorter unemployment duration, especially among younger workers; (2) higher labor force exit and other programs' take-up, especially among older workers; and (c) lower wages upon reemployment. The reform induced moderate government savings. Our results highlight the importance of considering the interplay with labor market conditions when designing long-term benefit schedules that affect workers close to retirement.