Report

The Intergenerational Effects of Requiring Unemployment Benefit Recipients to Engage in Non-Search Activities

Deborah A Cobb-Clark, Sarah C Dahmann, Anne C Gielen

IZA Institute of Labor Economics | Published : 2020

Abstract

We use a quasi-experimental design and national administrative data to analyze the intergenerational effects of introducing non-search activity requirements for unemployment benefit recipients. The Mutual Obligations Initiative (MOI) required people aged 18-34 receiving unemployment benefits to undertake a range of non-search activities (e.g., volunteering, training) in addition to job search. The young adults (aged 23-28) we study were in early adolescence in 1999 when the MOI was introduced. Using a regression discontinuity approach, we find that those young adults whose fathers were subject to the MOI have a lower incidence of unemployment benefit receipt in comparison to those whose fath..

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