Age Discontinuity Skews Unemployment Benefit Impact, Reveals Job Search Theory.
The article examines how age discontinuity affects the evaluation of social assistance and unemployment insurance policies. Job search theory suggests that age-based designs can lead to biased estimates of policy effects. People near age thresholds may change their job search behavior in anticipation of benefits. The study shows that social assistance benefits impact employment more than estimated, while unemployment insurance extensions increase nonemployment duration more than believed. This research offers insights for evaluating policies with age-related cutoffs.