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IZA Discussion Paper No. 18618
May 2026
Stepping Stone or Exit Path: Experimental Evidence on Training the Long-Term Unemployed
Jacob Nielsen Arendt, Iben Bolvig

This study estimates the effects of an employment programme for disadvantaged unemployed individuals. The programme emphasized on-the-job training and contracting the unemployed for a few paid work hours as a stepping stone into the labour market. Evaluated through a randomised controlled trial, the programme was found to accelerate transitions into part-time work. Contrary to its intention, it permanently increased the share of participants receiving disability pensions among the most disadvantaged groups. To explain this finding, we suggest that training, while enhancing productivity for some, simultaneously provided information of employability used in the assessment of disability pension eligibility.

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