Health effects of a youth labor market activation policy

We examine the health effects of a labor market activation policy in Sweden, the Youth Job Guarantee. To estimate causal effects, we implement a regression discontinuity design using the policy's age‐eligibility threshold, together with detailed administrative data on health‐related outcomes, including indicators of mental health. Health effects could arise indirectly, via effects on employment, or directly, for example via improved daily routines. In contrast to most existing studies on the health effects of active labor market programs, our results indicate that the activation policy did not have clear positive effects on health one year after the start of unemployment, measured by prescribed medication or medical contacts.