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

Mareen Bastiaans, Robert Dur and Anne Gielen

No 15891, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 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.

Keywords: welfare beneficiaries; long-term inactive; activation program; mental health; intergenerational spillovers (search for similar items in EconPapers)
JEL-codes: H53 I19 I38 J68 (search for similar items in EconPapers)
Pages: 76 pages
Date: 2023-01
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: Labour Economics, 2024, 90, 102593

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Related works:
Journal Article: Activating the long-term inactive: Labor market and mental health effects (2024)
Working Paper: Activating the Long-Term Inactive: Labor Market and Mental Health Effects (2023)
Working Paper: Activating the Long-Term Inactive: Labor Market and Mental Health Effects (2023)
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