Labour market policies as a social determinant of wellbeing

Evaluations of labour market policies typically focus on outcomes directly related to employment, such as poverty, unemployment or skill levels. From a social justice perspective the impact that labour market programmes have on wider social outcomes are equally important, however. This chapter aims to go beyond a narrow understanding of labour market policy impacts to improve our understanding of how labour market policies affect wellbeing. It combines theoretical perspectives from the social determinants of health literature with insights from comparative welfare state research. After two main pathways linking policies and wellbeing - material and psychosocial - are presented, the chapter analyses the impact on wellbeing of three types of labour market policies, namely unemployment benefits, active labour market programmes and employment protection legislation. It concludes by drawing implications for labour market policy and research.