What is it about?
In return for government benefits, unemployed people typically have to comply with certain demands such as compulsory meetings with government case workers. We show that such demands have long-term (+ 10 years) positive impacts on the employment prospects of the more resourceful among the unemployment but detrimentally impacts the mental health of the less resourceful long-term unemployed both on the short and the long run.
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Why is it important?
Our findings show that a one-size-fits-all approach to active labor market policies is unadvisable. To obtain positive employment effects and to avoid permanent unintended negative health effects, policies should be carefully designed to fit with the resources of the unemployed.
Perspectives
It is our hope that this article will help inform future debates about how unemployment policies should be designed. It is a topic of direct importance to the lives of millions of people worldwide.
Martin Baekgaard
Aarhus Universitet
Read the Original
This page is a summary of: Long-term employment and health effects of active labor market programs, Proceedings of the National Academy of Sciences, December 2024, Proceedings of the National Academy of Sciences,
DOI: 10.1073/pnas.2411439121.
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