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Activating the long-term inactive: Labor market and mental health effects

Author

Listed:
  • Bastiaans, Mareen
  • Dur, Robert
  • Gielen, Anne C.

Abstract

In many Western countries, a sizeable group of people live on welfare benefits for a long time. Many of them suffer from mental health issues. This paper studies the labor market and mental health effects of an activation program targeting these long-term inactive people. We exploit the staggered implementation of the program in a difference-in-differences design. We find that the activation program does not affect labor market outcomes of men and women. However, among men who were on mental health medication prior to the start of the program, we find a substantial drop in mental health drug prescriptions in the years following the start of the program.

Suggested Citation

  • Bastiaans, Mareen & Dur, Robert & Gielen, Anne C., 2024. "Activating the long-term inactive: Labor market and mental health effects," Labour Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:labeco:v:90:y:2024:i:c:s0927537124000885
    DOI: 10.1016/j.labeco.2024.102593
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    More about this item

    Keywords

    Activation program; Long-term inactive; Welfare beneficiaries; Mental health;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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