Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282518 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10830
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
In many Western countries, a sizeable group of people live on welfare benefits for a long time. Many of them suffer from mental health issues. This paper studies the labor market and mental health effects of an activation program targeting these long-term inactive people. We exploit the staggered implementation of the program in a difference-in-differences design. We find that the activation program hardly affects labor market outcomes. However, for those on mental health medication prior to the start of the program, the use of mental health medication substantially drops in the years following the start of the program. This effect is particularly pronounced and statistically significant for men. We also study spillover effects on the children of those targeted by the program, finding some tentative evidence for improved learning and mental health outcomes.
Subjects: 
activation program
long-term inactive
welfare beneficiaries
mental health
intergenerational spillovers
JEL: 
H53
I19
I38
J68
Document Type: 
Working Paper
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