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Guillaume WILLEMME (University of Leicester) – “Age discontinuity and nonemployment benefit policy evaluation through the lens of job search theory “

April 12 @ 12:15 pm - 1:30 pm
Microeconometrics Seminar: Every Tuesday
Time: 12:15 pm – 13:30 pm
Date: 12th of April 2022
Room : 3001 et visio

Guillaume WILLEMME (University of Leicester) – “Age discontinuity and nonemployment benefit policy evaluation through the lens of job search theory”

Abstract: Recent papers use sharp regression discontinuity designs (RDD) based on age discontinuity to evaluate minimum income and unemployment insurance benefit extension policies. Job search theory predicts that such designs generate biased estimates of the policy-relevant treatment effect because of expected effects. Owing to market frictions, people below the age threshold account for future eligibility and modify their search behavior accordingly. We provide a nonstationary job search model and quantify the theoretical biases on the datasets used in the literature. The employment impacts of minimum income policies are underestimated, whereas those of benefit extensions on nonemployment duration are overestimated. Joint with Bruno Decreuse.

Organizers:

Benoît SCHMUTZ (Pôle d’économie du CREST)
Anthony STRITTMATTER (Pôle d’économie du CREST)
Sponsors:
CREST