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The Effects of Mandatory Activation on Welfare Entry and Exit Rates

In: Safety Nets and Benefit Dependence

Author

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  • Anna Persson
  • Ulrika Vikman

Abstract

Previous literature shows that activation requirements for welfare recipients reduce welfare participation. However, the effect of mandatory activation on welfare entry and exit rates has not been fully examined. In this article, we use a rich set of register data that covers the entire population of Stockholm to study how the introduction of activation programs aimed at unemployed welfare recipients in various city districts affects the probability of individuals entering and exiting social assistance (SA). Our results show that mandatory activation has no overall average effects on SA entry or SA exit. However, we do find a significant negative effect of mandatory activation on the SA entry rate for young individuals and for unmarried individuals without children. For unmarried individuals without children, we find a positive but statistically insignificant effect on the probability to leave SA. Thus, individuals with fewer family responsibilities seem to be more responsive to the reform.

Suggested Citation

  • Anna Persson & Ulrika Vikman, 2014. "The Effects of Mandatory Activation on Welfare Entry and Exit Rates," Research in Labor Economics, in: Safety Nets and Benefit Dependence, volume 39, pages 189-217, Emerald Group Publishing Limited.
  • Handle: RePEc:eme:rleczz:s0147-912120140000039005
    DOI: 10.1108/S0147-912120140000039005
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    Citations

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    Cited by:

    1. 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.
    2. Hernæs, Øystein M., 2020. "Distributional effects of welfare reform for young adults: An unconditional quantile regression approach," Labour Economics, Elsevier, vol. 65(C).
    3. Bernt Bratsberg & Øystein Hernæs & Simen Markussen & Oddbjørn Raaum & Knut Røed, 2019. "Welfare Activation and Youth Crime," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 561-574, October.

    More about this item

    Keywords

    Social assistance reform; mandatory activation program; SA entry; SA exit; I38; H31;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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