State intervention and mental well-being among the unemployed

Although the relationship between unemployment and poor mental wellbeing ha s long been an area of interest within behavioural science, the role of sta te intervention in the unemployment situation has not been thoroughly inves tigated. This article investigates how unemployment benefit systems and act ive labour market policy measures affect mental well-being among the unempl oyed in Sweden. The study uses a longitudinal and nationally representative survey of 3,500 unemployed Swedes. Three different types of active labour market policy measures involving the unemployed were studied, 'activation', 'vocational training' and 'work-place participation' measures. Of these on ly involvement in 'workplace participation' was found to have a clearly pos itive effect on mental wellbeing among those participating. Of the two Swed ish unemployment benefit systems, the more generous income. replacement Une mployment Benefits and the less generous nat rate Cash Unemployment Benefit s, only access to income replacement Unemployment Benefits was found to med iate the mental well-being impact of unemployment. The positive effect of a ccess to income replacement Unemployment Benefits was further accentuated w hen unemployment was prolonged. Those with access to this benefit system se emed to suffer no further deterioration of mental wellbeing, while the ment al well-being of the rest of the unemployed further deteriorated.