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The Effects of an Employment Bonus for Long-Term Social Assistance Recipients

Author

Listed:
  • Jacob Nielsen Arendt

    (The Rockwool Foundation Research Unit)

  • Christophe Kolodziejczyk

    (The Danish Centre for Applied Social Science)

Abstract

This study uses a regression discontinuity design to estimate effects of an employment bonus program for long-term unemployed social assistance recipients. The program pays benefit bonuses to persons in the target group for any hours they work in regular employment or subsidized employment schemes. The program pays up to 6 % of post-tax earnings if they enter regular or subsidized employment over a specific two-year period. Our results show that the program has no effects on employment rates, earnings or participation in subsidized employment. The null findings are robust when using RD estimates based on different bandwidths and different window widths around the eligibility threshold and hold for given gender, age, ethnicity and parental status.

Suggested Citation

  • Jacob Nielsen Arendt & Christophe Kolodziejczyk, 2019. "The Effects of an Employment Bonus for Long-Term Social Assistance Recipients," Journal of Labor Research, Springer, vol. 40(4), pages 412-427, December.
    • Handle: RePEc:spr:jlabre:v:40:y:2019:i:4:d:10.1007_s12122-019-09290-3
    DOI: 10.1007/s12122-019-09290-3
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    Cited by:

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    More about this item

    Keywords

    Employment bonus; Economic incentive; Long-term unemployment; Welfare recipient; Regression discontinuity;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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