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 -