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On Mandatory Activation of Welfare Recipients

Author

Listed:
  • Dahlberg, Matz

    (Uppsala University)

  • Johansson, Kajsa

    (Uppsala University)

  • Mörk, Eva

    (Uppsala University)

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.

Suggested Citation

  • Dahlberg, Matz & Johansson, Kajsa & Mörk, Eva, 2009. "On Mandatory Activation of Welfare Recipients," IZA Discussion Papers 3947, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3947
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    References listed on IDEAS

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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. 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).
    3. Hernæs, Øystein & Markussen, Simen & Røed, Knut, 2017. "Can welfare conditionality combat high school dropout?," Labour Economics, Elsevier, vol. 48(C), pages 144-156.
    4. Hernæs, Øystein M., 2020. "Distributional effects of welfare reform for young adults: An unconditional quantile regression approach," Labour Economics, Elsevier, vol. 65(C).
    5. Dahl, Espen S. & Hernaes, Øystein, 2022. "Making Activation for Young Welfare Recipients Mandatory," IZA Discussion Papers 15170, Institute of Labor Economics (IZA).
    6. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Gielen, Anne C., 2020. "The Intergenerational Effects of Requiring Unemployment Benefit Recipients to Engage in Non-Search Activities," IZA Discussion Papers 13618, Institute of Labor Economics (IZA).
    7. 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.
    8. 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).

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    More about this item

    Keywords

    welfare reform; mandatory activation programs; welfare participation; employment; difference-in-differences;
    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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