Hasselt (The Brussels Morning Newspaper): Cutting unemployment benefits can encourage job hunting but a Swiss study found it also increased divorces and resulted in lighter, shorter babies suggesting hidden long-term costs.
The new government might end the unlimited time for unemployment benefits which was talked about during the election. Supporters say it will encourage more people to find jobs and many studies agree with them. However researchers from the universities of Lausanne and Bern found that changing unemployment benefits in Switzerland in 2011 led to some unexpected effects. They discovered that reducing the time people can get benefits caused more divorces and had health impacts on babies. By analyzing data from different sources they could see these effects.
What is the impact of welfare reform on divorce rates and infant health?
The researchers looked at more than just jobs and money. They studied if there were more divorces and how healthy the babies were for the group affected by the change in benefits. They found something. The reform caused a 25% higher chance of divorce for couples impacted by it. For those with low incomes the increase was even higher at 58%. If the main earner was a woman the chance of divorce was 78% higher. The researchers think the pressure to find work quickly led to financial and emotional stress causing more conflicts in relationships.
Babies born to mothers affected by the change were smaller and lighter compared to babies of unaffected mothers. On average the newborns weighed 80 grams less and were 6 millimeters shorter. This study is special because they could compare two groups directly making the results more reliable.It has been said that this approach is better than comparing situations before and after the change as other factors like economic conditions or social changes could influence the results.
What are the long-term effects of limiting unemployment benefits on job placement and economic well-being?
The researchers found that the change did help unemployed people find work faster. Around 70% of them got jobs within one and a half years compared to 60% in the group with longer benefits. This led to saving 140 million Swiss francs in unemployment benefits in the first year. However in the long term the positive effect faded. Many ended up taking jobs below their qualifications making them more likely to lose those jobs quickly. This rush to find work also increased the risk of poverty.
It has been said that while limiting benefits can save money initially it may lead to higher costs in the long run. For policymaker, it’s vital to consider the impact on future generations like lower birth weights affecting children’s school performance. In Hasselt where benefit periods are under discussion the focus should be on balancing re-employment goals with ensuring overall well-being. Negative effects on poverty, relationships and health should be carefully weighed alongside the benefits of the policy change.
