Side effects of labor market policies
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Side effects of labor market policies. / Caliendo, Marco; Mahlstedt, Robert; Van Den Berg, Gerard J; Vikström, Johan.
In: The Scandinavian Journal of Economics, Vol. 125, No. 2, 2023, p. 339-375.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Side effects of labor market policies
AU - Caliendo, Marco
AU - Mahlstedt, Robert
AU - Van Den Berg, Gerard J
AU - Vikström, Johan
PY - 2023
Y1 - 2023
N2 - Labor market policies, such as training and sanctions, are commonly used to bring workers back to work. By analogy to medical treatments, exposure to these tools may have side effects. We study effects on health using individual-level population registers on labor market outcomes, drug prescriptions, and sickness absence, comparing outcomes before and after exposure to training and sanctions. Training improves cardiovascular and mental health and lowers sickness absence. This is likely due to instantaneous features of participation, like the adoption of a more rigorous daily routine, rather than improved employment prospects. Benefits sanctions cause a short-run deterioration of mental health.
AB - Labor market policies, such as training and sanctions, are commonly used to bring workers back to work. By analogy to medical treatments, exposure to these tools may have side effects. We study effects on health using individual-level population registers on labor market outcomes, drug prescriptions, and sickness absence, comparing outcomes before and after exposure to training and sanctions. Training improves cardiovascular and mental health and lowers sickness absence. This is likely due to instantaneous features of participation, like the adoption of a more rigorous daily routine, rather than improved employment prospects. Benefits sanctions cause a short-run deterioration of mental health.
KW - Faculty of Social Sciences
KW - cardiovascular disease
KW - depression
KW - drugs
KW - health
KW - mental health
KW - prescriptions
KW - sanctions
KW - sickness
KW - training
KW - unemployment
U2 - 10.1111/sjoe.12514
DO - 10.1111/sjoe.12514
M3 - Journal article
VL - 125
SP - 339
EP - 375
JO - Scandinavian Journal of Economics
JF - Scandinavian Journal of Economics
SN - 0347-0520
IS - 2
ER -
ID: 319602557