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Preventing NEETs during the Great Recession: The Effects of a Mandatory Activation Program for Young Welfare Recipients

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  • Cammeraat, Emile

    (Leiden University)

  • Jongen, Egbert L. W.

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Koning, Pierre

    (Vrije Universiteit Amsterdam)

Abstract

We study the impact of a mandatory activation program for young welfare recipients in the Netherlands. Introduced at the end of 2009, the goal of the program was to prevent so-called NEETs (individuals not in employment, education or training). We use a large administrative data set for the period 1999-2012 and employ differences-in-differences and regression discontinuity to estimate the effects of the reform. We find that the reform reduced the number of NEETs on welfare, increased the number of NEETs not on welfare, and had no effect on the overall number of NEETs. Our finding that the reform did not reduce the total number of NEETs contrasts with previous studies, which may be due to the fact that the reform took place during a severe economic recession.

Suggested Citation

  • Cammeraat, Emile & Jongen, Egbert L. W. & Koning, Pierre, 2017. "Preventing NEETs during the Great Recession: The Effects of a Mandatory Activation Program for Young Welfare Recipients," IZA Discussion Papers 11090, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11090
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    References listed on IDEAS

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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. Dahl, Espen S. & Hernaes, Øystein, 2022. "Making Activation for Young Welfare Recipients Mandatory," IZA Discussion Papers 15170, Institute of Labor Economics (IZA).
    5. 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.
    6. 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).
    7. 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.
    8. 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.

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    More about this item

    Keywords

    differences-in-differences; mandatory activation programs; NEETs; regression discontinuity;
    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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