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The family gap and family friendly policies: the case of Norway

Ines Hardoy and Pål Schøne ()

Applied Economics, 2008, vol. 40, issue 22, 2857-2871

Abstract: Norway has among the most generous family policies in the world. The most recent is the cash-for-care reform, which was implemented in 1998. We answer two main questions in this article: What is the level of the family gap in such a generous regime and how has it developed as a consequence of the latest reform? Results suggest that the family gap is rather modest in Norway compared to many other countries and we find no evidence of a worsening of the gap in recent years. A positive interpretation of these results is that the Norwegian labour market is fairly flexible, in the sense that it seems to be able to absorb even more generous family policies.

Date: 2008
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DOI: 10.1080/00036840600993981

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Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2857-2871