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CEP discussion paper
You Can't Always Get What You Want: the Impact of the Jobseeker's Allowance
Alan Manning
July 2005
Paper No' CEPDP0697:
Full Paper (pdf)

JEL Classification: J64

Tags: unemployment insurance; job search; labour supply

In 1996 the UK made major changes to its welfare system for the support of the unemployed with the introduction of the Jobseeker’s Allowance. This tightened the work search requirements needed for eligibility for benefit. It resulted in large flows out of claimant status, but, this paper concludes, not into employment. The movement out of claimant status was largest for those with low levels of search activity. But, this paper finds no evidence of increased job search activity as a result of this change.