The Effect of Government-Mandated Benefits on Youth Employment

INDUSTRIAL AND LABOR RELATIONS REVIEW, October 1996

Posted: 16 Jun 1998

See all articles by Robert Kaestner

Robert Kaestner

University of Chicago; National Bureau of Economic Research (NBER)

Abstract

The author empirically examines the effect on youth employment of government-mandated employer-provided benefits. In particular, he investigates the effect of unemployment compensation insurance taxes and workers' compensation insurance mandates on the employment of youths (aged 16-19) and young adults (aged 20-24 and 25-34). An analysis of time series state aggregate data for the years 1982-89 indicates that a one percentage point increase in the employer's cost of workers' compensation insurance reduced employment for both teenagers and young adults by about 1.5 percentage points. Unemployment insurance taxes significantly decreased the employment of teenagers, but not that of young adults.

JEL Classification: J11, J33, J65

Suggested Citation

Kaestner, Robert, The Effect of Government-Mandated Benefits on Youth Employment. INDUSTRIAL AND LABOR RELATIONS REVIEW, October 1996, Available at SSRN: https://ssrn.com/abstract=3077

Robert Kaestner (Contact Author)

University of Chicago ( email )

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Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

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