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Incentive effects of cash benefit among low-skilled young adults: Applying a regression discontinuity design

机译:现金福利在低技能的年轻成年人中的激励效应:应用回归不连续性设计

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In 2014, the Danish Government implemented an active labour market reform directed at unemployed young adults under 30 years of age with low educational qualifications. The reform replaced the (unemployment) cash benefits with a lower education benefit for many of the unemployed aged under 30 and obliged the low-skilled in this group to enrol in a regular general or vocational (VET) education program. This paper exploits the sharp discontinuity that occurs at age 30 to estimate the joint effect of higher benefits and the cessation of educational obligations on the share receiving cash benefits and the share enrolled in education. We estimate the effects by applying a regression discontinuity design. We report results for the group of low educated young adults and for subgroups facing different economic incentives. The results establish that reaching age 30 creates an incentive to apply for cash benefits, and we find strong evidence that a significant increase in the share of cash benefit recipients relates to a corresponding reduction in the share of young adults enrolled in education. When including subgroups the size of the effect increases, and the results demonstrate that the effects are strongest among previous education benefit recipients. This indicates that the results are mainly driven mainly by individuals reverting to cash benefits.
机译:2014年,丹麦政府实施了一项积极的劳动力市场改革,在30岁以下的失业者的年轻人,受教育资格低。该改革取代了(失业)的现金福利,为30岁以下的许多失业者效益,并义在本集团的低技能中注册了常规或职业(职业署)教育方案。本文利用30岁时发生的急剧不连续性,以估计高等利益的联合效应和对接受现金福利的股份股权和纳入教育的份额的联合效应。我们通过应用回归不连续性设计来估计效果。我们向较低受过教育的年轻成年人和面临不同经济激励措施的亚组的结果报告结果。结果建立了达到的30岁,申请现金福利的激励会产生激烈的奖励,我们发现了有力的证据表明现金福利者份额的显着增加与参加教育的年轻成年人的份额相应减少。当包括亚组的效果大小增加时,结果表明,在以前的教育受益受益者中,这些效果最强。这表明结果主要由个人恢复现金福利的个人推动。

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