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

Simen Markussen and Knut Røed ()

American Economic Journal: Economic Policy, 2016, vol. 8, issue 1, 180-211

Abstract: 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. (JEL H55, I32, I38, J24)

JEL-codes: H55 I32 I38 J24 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/pol.20140334
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Citations: View citations in EconPapers (15)

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Working Paper: Leaving Poverty Behind? The Effects of Generous Income Support Paired with Activation (2014)
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