Mathilde Pourtois
(IRIS-L)
will give a presentation on
Tightening Eligibility Requirements for Unemployment Benefits: Impact on Housing Autonomy
Abstract: Leaving the parental home is a pivotal event in the life of every individual, marking the first step towards an independent adult life. In the economic literature, the role of the state in influencing the timing of the transition out of the parental home has been relatively understudied. This paper aims to bridge this gap by investigating the causal link between welfare generosity and housing autonomy. Specifically, we analyse the impact of a reform that tightened the eligibility requirements for the activation allowance - a youth-specific unemployment insurance in Belgium - on the decision to leave the parental home. We use a difference-in-differences strategy for estimating the causal impact of this reform. While the overall impact on young adults' decisions to stay at their parental home is negligible when considering both genders together, a deeper analysis reveals gender-differentiated reactions. Notably, the reform significantly influences young men's decisions to remain at the parental home. In contrast, young women demonstrate adaptability by increasing their participation in the labour market. Our paper highlights how a similar financial incentive can provoke gender-specific behavioural reactions.