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Norwegian

Leaving Poverty Behind? - The Effects of Generous Income Support Paired with Activation

Link to article:

[PDF]

Authors:

Markussen, Simen and Knut Røed

Year:

2016

Reference:

American Economic Journal: Economic Policy

Vol 8 (1), 180-211

Summary

We evaluate a comprehensive activation program in Norway targeted at hard-to-employ social assistance claimants with reduced work capacity. The program offers a combination of tailored rehabilitation, training and job practice, and a generous, stable, and non-means-tested benefit. Its primary aims are to mitigate poverty and subsequently promote self-supporting employment. Our evaluation strategy exploits a geographically staggered program introduction, and the causal effects are identified on the basis of changes in employment prospects that coincide with local program implementation in a way that correlates with the predicted probability of becoming a participant. We find that the program raised employment prospects considerably.

Project:

Oppdragsgiver: Norges Forskningsråd
Oppdragsgivers prosjektnr.: 236992
Frisch prosjekt: 1178 - Egalitarianism under pressure? New perspectives on inequality and social cohesion

Oppdragsgiver: Arbeidsforskningsinstituttet
Oppdragsgivers prosjektnr.:
Frisch prosjekt: 1308 - Evaluation of a Norwegian qualification program