Effects of Disability Benefits on the Employment of Low‐skilled Youth: Evidence from France

Abstract In this article, we assess the effect of the French disability benefits program on the employment of low‐skilled youth. Using the French Labour Force Survey, we exploit the age discontinuity in the program eligibility to instrument the effect of this allowance on employment. The results show that receipt of the French disability benefits program reduces the probability of employment for low‐skilled youth with disabilities. However, the effect differs markedly by gender: it is significantly higher for women, while no effect is detectable in men.