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Activity-compensation for young people
Country of implementation
General short description of the innovation
From 2003 the previous early retirement and sickness-pay (part of the national retirement scheme) was substituted with activity compensation (part of the national health insurance) for those aged 19-29. A central purpose was to assure activity without risking loss of compensation for young people with long-time reduced working capacity. E requirement is that the reduced working capacity is estimated to last for at least a year, and the compensation is granted for no more than 3 years at a time. Apart from the compensation the guarantee provides the possibility to take part in activities and receive remuneration for activity fees if the activity is estimated to enhance the ability of increasing ones working capacity. Search and planning of activities should be carried out with a personal agent at the social insurance office.
Type of Policy
Duration of the policy
Starting 2003, ongoing
Scope of innovation
- Scope: Structural
- Budgets: -
- Number of intended beneficiaries: From 2004 to 2010 the number of actual beneficiaries has increased from 25000 to slightly over 30000
- Spatial coverage: national
General description of (intended) objectives and strategies
Intended to increase activation and utilize the competence and development possibilities for young people, increasing their activation-level and wellbeing as well as increasing the likelihood of entering or re-entering the labour market.
Nature of the innovation-long-term perspective
Type of ideal-typical strategy for the innovation
Type of innovation
- other (substituting (but new) policy)
- benefit duration
- others (Intended to increase activation and utilize the competence and development possibilities for young people, increasing their activation-level and wellbeing as well as increasing the likelihood of entering or re-entering the labour market.)
Intended target group
19-29 year olds
Working age population
- employment situation (unemployed, reduced working capacity)
Actors involved in policy-making/implementation and/or evaluation
- central state
Clarification of the role of various actors
New or reformed policies of this type requiring changes in legislation always go out on referral before being decided upon and implemented. Such referral instances usually include municipalities, social partners, evaluative public authorities and relevant interest organizations
- benefit duration
- others (duration)
Did the innovation have any outcome related to job quantity?
in the past few years there has been an increase in the total share of young people leaving activity compensation and moving into either open unemployment or work.