Unemployment benefits reform : Boosting job search or punishing the most vulnerable?
ires |
What do unemployment benefit reforms really change in job search behavior?
As Belgium considers capping unemployment benefits to two years, recent research conducted at LIDAM provides timely and rigorous insights into this critical policy issue.
Nathan Lachapelle, our teaching assistant and researcher at IRES, shares in a short video the findings of a project carried out with Muriel Dejemeppe (IRES) and Koen Declercq (KU Leuven). The team analyzed the effects of a reform to Belgium’s unemployment insurance system using detailed administrative data.
Their results show strong heterogeneity in behavioral responses:
- No significant impact on lone parents
- Clear effects among household heads living with a partner
- Contrasting outcomes between increased and decreased benefits over time
This work underscores the importance of accounting for population heterogeneity when designing and evaluating labor market policies.
A concise and accessible video worth watching to see how applied economic research can inform ongoing debates on unemployment policy.