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The effect of job search requirements on welfare receipt

Author

Listed:
  • Nicolas Hérault

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne; The ARC Centre of Excellence for Children and Families over the Life Course; Global Labor Organization)

  • Ha Vu

    (Deakin University; Melbourne Institute: Applied Economic & Social Research, The University of Melbourne; Tax and Transfer Policy Institute, Australian National University)

  • Roger Wilkins

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne; IZA Institute of Labor Economics, Global Labor Organization; Tax and Transfer Policy Institute, Australian National University)

Abstract

Many countries impose job search requirements on unemployment benefit recipients. Existing studies have evaluated only incremental changes to requirements. Australian reforms in 1995 saw groups of welfare recipients newly subjected to job search requirements, allowing us to produce the first causal estimates of the total effects of such requirements on welfare receipt. Using a quasi-experimental design and administrative data, we find large negative effects on welfare receipt for mature-age partnered women targeted by the reforms. We also find large negative effects on welfare receipt of their partners, suggesting family labour supply decisions were considerably affected.

Suggested Citation

  • Nicolas Hérault & Ha Vu & Roger Wilkins, 2020. "The effect of job search requirements on welfare receipt," Melbourne Institute Working Paper Series wp2020n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2020n16
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    References listed on IDEAS

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    More about this item

    Keywords

    welfare receipt; unemployment benefit; job search requirements;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • D10 - Microeconomics - - Household Behavior - - - General
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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