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You Can't Always Get What You Want: the Impact of the Jobseeker's Allowance

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  • Alan Manning

Abstract

In 1996 the UK made major changes to its welfare system for the support of the unemployed with the introduction of the Jobseeker's Allowance. This tightened the work search requirements needed for eligibility for benefit. It resulted in large flows out of claimant status, but, this paper concludes, not into employment. The movement out of claimant status was largest for those with low levels of search activity. But, this paper finds no evidence of increased job search activity as a result of this change.

Suggested Citation

  • Alan Manning, 2005. "You Can't Always Get What You Want: the Impact of the Jobseeker's Allowance," CEP Discussion Papers dp0697, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp0697
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Long-term unemployment: There is no easy fix
      by Blog Admin in British Politics and Policy at LSE on 2013-10-22 12:00:35

    Citations

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    Cited by:

    1. Andrea Morescalchi, 0. "A new career in a new town. Job search methods and regional mobility of unemployed workers," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 0, pages 1-50.
    2. Lorenzo Cappellari & Stephen P. Jenkins, 2014. "The Dynamics of Social Assistance Benefit Receipt in Britain," Research in Labor Economics, in: Stéphane Carcillo & Herwig Immervoll & Stephen P. Jenkins & Sebastian Königs & Konstantinos Tatsiram (ed.), Safety Nets and Benefit Dependence, volume 39, pages 41-79, Emerald Publishing Ltd.
    3. van Huizen, Thomas & Alessie, Rob, 2019. "Risk aversion and job mobility," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 91-106.
    4. Arni, Patrick & Schiprowski, Amelie, 2019. "Job search requirements, effort provision and labor market outcomes," Journal of Public Economics, Elsevier, vol. 169(C), pages 65-88.
    5. T.M. van Huizen & Rob Alessie, 2016. "Risk Aversion and Job Mobility," Working Papers 16-09, Utrecht School of Economics.
    6. Barbara Petrongolo, 2007. "What Are the Long-Term Effects of UI? Evidence from the UK JSA Reform," CEP Discussion Papers dp0841, Centre for Economic Performance, LSE.
    7. Sarah Brown & Karl Taylor, 2008. "Reservation Wages, Expected Wages and Labour Market Outcomes: Analysis of Individual Level Panel Data," Working Papers 2008008, The University of Sheffield, Department of Economics, revised Jul 2008.
    8. Micklewright, John & Nagy, Gyula, 2010. "The effect of monitoring unemployment insurance recipients on unemployment duration: Evidence from a field experiment," Labour Economics, Elsevier, vol. 17(1), pages 180-187, January.
    9. Andriy Zapechelnyuk & Ro’i Zultan, 2020. "Job search costs and incentives," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(2), pages 181-202, October.
    10. Cockx, Bart & Ghirelli, Corinna & Van der Linden, Bruno, 2013. "Monitoring Job Search Effort with Hyperbolic Time Preferences and Non-Compliance: A Welfare Analysis," IZA Discussion Papers 7266, Institute of Labor Economics (IZA).
    11. Petrongolo, Barbara, 2009. "The long-term effects of job search requirements: Evidence from the UK JSA reform," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1234-1253, December.
    12. Gerard J. van den Berg & Bas van der Klaauw, 2019. "Structural Empirical Evaluation Of Job Search Monitoring," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(2), pages 879-903, May.
    13. Richard Upward & Peter W. Wright, 2019. "Don't Look Down: The Consequences of Job Loss in a Flexible Labour Market," Economica, London School of Economics and Political Science, vol. 86(341), pages 166-200, January.
    14. Andrea Morescalchi, 2016. "The Puzzle Of Job Search And Housing Tenure: A Reconciliation Of Theory And Empirical Evidence," Journal of Regional Science, Wiley Blackwell, vol. 56(2), pages 288-312, March.
    15. Manning, Alan, 2009. "You can't always get what you want: The impact of the UK Jobseeker's Allowance," Labour Economics, Elsevier, vol. 16(3), pages 239-250, June.
    16. Andrea Morescalchi, 2021. "A new career in a new town. Job search methods and regional mobility of unemployed workers," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 20(2), pages 223-272, May.
    17. Avram, Silvia & Brewer, Mike & Salvatori, Andrea, 2018. "Can't work or won't work: Quasi-experimental evidence on work search requirements for single parents," Labour Economics, Elsevier, vol. 51(C), pages 63-85.
    18. Cockx, Bart & Ghirelli, Corinna & Van der Linden, Bruno, 2014. "Is it socially efficient to impose job search requirements on unemployed benefit claimants with hyperbolic preferences?," Journal of Public Economics, Elsevier, vol. 113(C), pages 80-95.
    19. Gautier, Pieter A. & van der Klaauw, Bas, 2009. "Institutions and labor market outcomes in the Netherlands," Working Paper Series 2009:28, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    20. Yin Fok & Duncan McVicar, 2013. "Did the 2007 welfare reforms for low income parents in Australia increase welfare exits?," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    21. Sung‐Eun Cho & Young‐Min Lee, 2020. "The Effects of Youth Job Seeker Allowance in South Korea," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 34(2), pages 64-77, November.
    22. Cockx, Bart & Dejemeppe, Muriel, 2012. "Monitoring job search effort: An evaluation based on a regression discontinuity design," Labour Economics, Elsevier, vol. 19(5), pages 729-737.

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    More about this item

    Keywords

    Unemployment Insurance; Job Search; Labour Supply;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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