About the lecture
This study investigates the effects of municipal employment services on entering paid employment and health. To identify causal effects, we use an instrumental variable (IV) design based on referral behavior of case workers.
We combine data on employment services from the municipality of Rotterdam with register data from Statistics Netherlands. The results show that re-integration activities increase the likelihood of entering paid employment and improve health of welfare recipients. Especially psychological disorders were reduced. The effects of employment services on entering paid employment and health are similar across different sociodemographic groups.