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Preventing NEETs during the Great Recession: the effects of mandatory activation programs for young welfare recipients

Author

Listed:
  • Emile Cammeraat

    (Leiden University)

  • Egbert Jongen

    (Leiden University
    CPB Netherlands Bureau for Economic Policy Analysis
    IZA)

  • Pierre Koning

    (Leiden University
    Vrije Universiteit Amsterdam
    IZA)

Abstract

We study the impact of mandatory activation programs for young welfare recipients in the Netherlands. What makes this reform unique is that it clashed head on with the Great Recession. We use differences-in-differences and data for the period 1999–2012 to estimate the effects of this reform. We find that the reform reduced the number of welfare recipients but had no effect on the number of NEETs (individuals not in employment, education or training). The absence of employment effects contrasts with previous studies on the impact of mandatory activation programs, which we argue is due to the reform taking place during a severe economic recession.

Suggested Citation

  • Emile Cammeraat & Egbert Jongen & Pierre Koning, 2022. "Preventing NEETs during the Great Recession: the effects of mandatory activation programs for young welfare recipients," Empirical Economics, Springer, vol. 62(2), pages 749-777, February.
  • Handle: RePEc:spr:empeco:v:62:y:2022:i:2:d:10.1007_s00181-021-02018-2
    DOI: 10.1007/s00181-021-02018-2
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    Cited by:

    1. Smedsvik, Bård & Iacono, Roberto, 2022. "(In)visible sanctions: micro-level evidence on compulsory activation for young welfare recipients," INET Oxford Working Papers 2022-24, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    2. Emile Cammeraat & Egbert Jongen & Pierre Koning, 2022. "Preventing NEETs during the Great Recession: the effects of mandatory activation programs for young welfare recipients," Empirical Economics, Springer, vol. 62(2), pages 749-777, February.
    3. Hernæs, Øystein M., 2020. "Distributional effects of welfare reform for young adults: An unconditional quantile regression approach," Labour Economics, Elsevier, vol. 65(C).
    4. Cockx, B. & Declercq, Koen & Dejemeppe, Muriel, 2022. "Losing prospective entitlement to unemployment benefits. Impact on educational attainment," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    5. Dahl, Espen S. & Hernaes, Øystein, 2022. "Making Activation for Young Welfare Recipients Mandatory," IZA Discussion Papers 15170, Institute of Labor Economics (IZA).
    6. Chiara Natalie Focacci, 2020. "“You reap what you sow”: Do active labour market policies always increase job security? Evidence from the Youth Guarantee," European Journal of Law and Economics, Springer, vol. 49(3), pages 373-429, June.
    7. Iva Tomić & Ivan Zilic, 2020. "Working for 200 Euro? The Unintended Effects of Traineeship Reform on Youth Labor Market Outcomes," LABOUR, CEIS, vol. 34(3), pages 347-371, September.
    8. Espen S. Dahl & Øystein Hernaes, 2023. "Making activation for young welfare recipients mandatory," LABOUR, CEIS, vol. 37(1), pages 96-121, March.
    9. Iva Tomic & Ivan Zilic, 2018. "Working for 200 euro? The effects of traineeship reform on labor market outcomes in Croatia," Working Papers 1804, The Institute of Economics, Zagreb.

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    More about this item

    Keywords

    NEETs; Mandatory activation programs; Differences-in-differences;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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