Activating the Long-Term Inactive: Labor Market and Mental Health Effects

Arbeitspapier

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 hardly affects labor market outcomes. However, for those on mental health medication prior to the start of the program, the use of mental health medication substantially drops in the years following the start of the program. This effect is particularly pronounced for men. We also study spillover effects on the children of those targeted by the program, finding some suggestive evidence for improved learning and mental health outcomes.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 15891

Classification and Topics

• Classification: Wirtschaft ; National Government Expenditures and Welfare Programs ; Health: Other ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; Mobility, Unemployment, and Vacancies: Public Policy
• Subject: activation program ; long-term inactive ; welfare beneficiaries ; mental health ; intergenerational spillovers

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bastiaans, Mareen ; Dur, Robert ; Gielen, Anne C.
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/272518
• Last update: 10.03.2025, 11:43 AM CET