Mandatory Activation of Welfare Recipients – Evidence from the City of Stockholm
(English)Manuscript (preprint) (Other academic)
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. On average, we find that mandatory activation of welfare recipients increases employment as well as disposable income. However, these sizes of the estimated effects must be considered relatively small. There are some indications of larger effects for single-headed households.
IdentifiersURN: urn:nbn:se:uu:diva-205234OAI: oai:DiVA.org:uu-205234DiVA: diva2:640960