Activation and mental health among unemployed youth
The share of young adults suffering from mental health problems has increased over time, and mental health problems tend to be especially common among those who are unemployed. In this project, we investigate if activation of unemployed youth affects their mental health. More specifically, we examine the health effects of a labor market activation policy, the Youth Job Guarantee, implemented in Sweden in 2007. All unemployed individuals under 25 years of age are eligible for this program after 90 days of unemployment. To estimate the causal effects of this policy on health, we implement an RD-design using the age-eligibility threshold of the policy. To measure health outcomes, we use administrative data on purchases of prescribed medication and visits in specialized care.