Does eliminating benefit eligibility requirements improve unemployed job search and labour market outcomes?

Gerards, Ruud, and Welters, Riccardo (2021) Does eliminating benefit eligibility requirements improve unemployed job search and labour market outcomes? Applied Economics Letters. (In Press)

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Abstract

Benefit eligibility requirements intend to incentivize the unemployed to find work more quickly. Our results, in an Australian context, suggest that those subjected to benefit eligibility requirements, despite searching at least as hard, take longer to find employment. Moreover, they spend less time in employment in the first twelve months and, if employed, have jobs with lower wages and fewer hours compared to otherwise similar unemployed without benefit eligibility requirements. Our findings are consistent with cognitive theories that emphasize that benefit eligibility requirements externalize job search motivation and increase stress, both of which reduce employment search effectiveness.

Item ID: 68225
Item Type: Article (Research - C1)
ISSN: 1466-4291
Copyright Information: © 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (http://creativecommons.org/licenses/by-nc- nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way.
Date Deposited: 30 Jun 2021 00:47
FoR Codes: 38 ECONOMICS > 3801 Applied economics > 380111 Labour economics @ 100%
SEO Codes: 15 ECONOMIC FRAMEWORK > 1505 Microeconomics > 150507 Micro labour market issues @ 100%
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