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On Mandatory Activation of Welfare Recipients

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Author Info
Dahlberg, Matz () (Uppsala University)
Johansson, Kajsa () (Uppsala University)
Mörk, Eva () (IFAU)

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Abstract

This paper investigates whether mandatory activation programs for welfare recipients have effects on welfare participation, employment and disposable income. In contrast to earlier studies, we are able to capture both entry and exit effects. The empirical analysis makes use of a Swedish welfare reform in which the city districts in Stockholm gradually implemented mandatory activation programs for individuals on welfare. Overall, we find that mandatory activation of welfare recipients reduces overall welfare participation and increases employment. We also find that mandatory activation programs appear to work best for young people and for people born in non-Western countries.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3947.

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Length: 39 pages
Date of creation: Jan 2009
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Handle: RePEc:iza:izadps:dp3947

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Related research
Keywords: welfare reform; mandatory activation programs; welfare participation; employment; difference-in-differences;

Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare 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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Cited by:
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  1. Jochen Michaelis & Alexander Spermann, 2009. "Geringqualifizierte Arbeit, Marktlöhne und Sozialpolitik: Konzepte für Deutschland," MAGKS Papers on Economics 200920, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung). [Downloadable!]
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