Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/263213 
Year of Publication: 
2022
Series/Report no.: 
GLO Discussion Paper No. 1154
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
Providing income support to unemployed education-leavers reduces the returns to investments in education because it makes the consequences of unemployment less severe. We evaluate a two-part policy reform in Belgium to study whether conditioning the prospective entitlement to unemployment benefits for education-leavers on age or schooling attainment can affect educational achievements. The results show that the prospect of financial loss in case of unemployment can significantly raise degree completion and reduce dropout in higher education, but not in high school. We argue that the higher prevalence of behavioral biases among lower educated and younger students could explain these contrasting findings.
Subjects: 
unemployment insurance
conditionality
degree completion
school dropout
behavioral biases
JEL: 
H52
I21
I26
I28
J08
J18
J24
J65
J68
Document Type: 
Working Paper

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