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Effects of disability benefits on the employment of low‐skilled youth: Evidence from France

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  • Sylvain Chareyron
  • Naomie Mahmoudi

Abstract

In this article, we assess the effect of the French disability benefits program on the employment of low‐skilled youth. Using the French Labour Force Survey, we exploit the age discontinuity in the program eligibility to instrument the effect of this allowance on employment. The results show that receipt of the French disability benefits program reduces the probability of employment for low‐skilled youth with disabilities. However, the effect differs markedly by gender: it is significantly higher for women, while no effect is detectable in men. Dans cet article, nous évaluons l'effet du programme français d'allocation aux adultes handicapés (AAH) sur l'emploi des jeunes peu qualifiés. En utilisant l'enquête Emploi de l'Insee, nous exploitons la discontinuité liée à l'âge dans les critères d'éligibilité au programme afin d'instrumenter l'effet de cette allocation sur l'emploi. Les résultats montrent que la perception de l'allocation pour les personnes en situation de handicap réduit la probabilité d'emploi des jeunes peu qualifiés en situation de handicap. Toutefois, l'effet varie fortement selon le sexe : il est significatif pour les femmes, tandis qu'aucun effet n'est détectable chez les hommes.

Suggested Citation

  • Sylvain Chareyron & Naomie Mahmoudi, 2026. "Effects of disability benefits on the employment of low‐skilled youth: Evidence from France," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 59(2), pages 796-826, May.
    • Handle: RePEc:wly:canjec:v:59:y:2026:i:2:p:796-826
    DOI: 10.1111/caje.70070
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