Keeping the youth out of social assistance: The effect of a mandatory search period on receiving welfare benefits

PhD Seminar
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Speaker
Ine de Mey
Date
Wednesday 1 Feb 2023, 13:00 - 14:00
Type
Seminar
Room
M3-03
Building
Van der Goot Building
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I exploit the natural experiment caused by the introduction of a mandatory search period for young adults who want to apply for welfare benefits in the Netherlands in 2012.

I estimate the causal effect of a mandatory search period on receiving welfare benefits and other socio-economic outcomes using the discontinuity at the 27 years threshold, to compare young adults before the age cut-off to young adults after, in that sense comparing young adults who were eligible for the mandatory search period to young adults who were not.

The results show a positive and robust effect of the policy on the employment of men in the short run. Unfortunately, I do not find significant or robust results for the other socioeconomic outcome variables. This may be since I perceive the receipt and not the application of welfare benefit and therefore observes the effect of being eligible for a mandatory search period and not the actual treatment.

Furthermore, my results indicate that young adults who are low educated are the ones that benefit from the policy which goes against most of the literature.

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See also

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Maarten Bosker (Erasmus University Rotterdam)
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