The Impact of More Intensive Unemployment Benefit Requirements on Jobseekers' Likelihood of Complying

Abstract

<p>After 12 months of unemployment, Australian benefit recipients must undertake intensive participation in activities, in addition to standard requirements. Advocacy groups have raised concerns that these requirements are too onerous. If this were the case, those with additional requirements would be expected to comply less, and more often have a valid reason for non-compliance. We examine this claim using discontinuities in levels of requirements. We do not find evidence of higher rates of non-compliance or valid reason. However, further research is required to determine how to optimally set requirements, including further research on the efficacy of the requirements themselves.</p>