Unemployment under the flex job scheme increases the risk of permanent social security benefits

In Denmark, a flex job scheme was introduced in 1998 in the expectation that more people could remain in the workforce despite a reduced working capacity. The aim of this study was to characterise the group that did not obtain a flex job after having been included in the flex job scheme.

Persons included in the flex job scheme from 1 January 2001 to 30 March 2008 were identified via the Ministry of Employment's DREAM register. Data were linked to Statistics Denmark and The Danish National Patient Registry. Among the individuals who did not obtain employment in a flex job within the first three months, we identified those who did not obtain employment before they were transferred to disability pension or flex benefit.

A total of 74,277 persons were included in the flex job scheme. Among these persons 33% received unemployment benefit for more than three months and the rest obtained a flex job within the first three months. Overall, 23% of the unemployment benefit recipients never entered the labour market, but were awarded early retirement pension or flex benefit. This percentage varied among different socio-demographic variables and regions.

The present study demonstrates that attention should be paid to the flex job scheme, especially for those who do not obtain employment within the first three months.

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