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The effect of government-mandated benefits on youth unemployment

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Author Info
Robert Kaestner
Abstract

The author empirically examines the effect on youth employment of government-mandated employer-provided benefits. In particular, he investigates the effect of unemployment compensation insurance taxes and workers' compensation insurance mandates on the employment of youths (aged 16-19) and young adults (aged 20-24 and 25-34). An analysis of time series state aggregate data for the years 1982-89 indicates that a one percentage point increase in the employer's cost of workers' compensation insurance reduced employment for both teenagers and young adults by about 1.5 percentage points. Unemployment insurance taxes significantly decreased the employment of teenagers, but not that of young adults. (Abstract courtesy JSTOR.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 50 (1996)
Issue (Month): 1 (October)
Pages: 122-142
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Handle: RePEc:ilr:articl:v:50:y:1996:i:1:p:122-142

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  1. A. Kugler, M. Kugler, 2008. "Labour Market Effects of Payroll Taxes in Developing Countries: Evidence from Colombia," Working Papers eg0056, Wilfrid Laurier University, Department of Economics, revised 2008. [Downloadable!]
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  2. Buchmueller, Thomas C. & DiNardo, John & Valletta, Rob, 2009. "The Effect of an Employer Health Insurance Mandate on Health Insurance Coverage and the Demand for Labor: Evidence from Hawaii," IZA Discussion Papers 4152, Institute for the Study of Labor (IZA). [Downloadable!]
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This page was last updated on 2009-12-14.


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