Minimum income policies significantly underestimated, benefit extensions overestimated in job search impact.
The study looked at how policies affecting minimum income and unemployment benefits impact people's job search behavior. By using a specific method called sharp regression discontinuity designs, the researchers found that the current job search theory may not accurately predict the effects of these policies. They discovered that the impact of minimum income policies on employment is underestimated, while the impact of benefit extensions on how long people are unemployed is overestimated. This suggests that these policies may have a bigger influence on people's job search decisions than previously thought.