The intergenerational effects of requiring unemployment benefit recipients to engage in non-search activities

Abstract

We use a quasi-experimental design and national administrative data to analyze the intergenerational effects of introducing non-search activity requirements for long-term unemployment benefit recipients aged 18–34. The young-adult children of these recipients were in early adolescence when the requirements were introduced. Using a regression discontinuity approach, we find that young adults, particularly men, whose fathers were subject to the requirements have a lower incidence of unemployment benefit receipt compared to those whose fathers were not. More detailed investigation suggests completion of the mandated activities, role modeling, changes in attitudes, improved health, and greater support and stability as potential channels.