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To What Extent Is a Transition into Employment Associated with an Exit from Poverty

Taryn Galloway

Discussion Papers from Statistics Norway, Research Department

Abstract: A link between lack of employment and poverty is often made implicitly, but can be difficult to enumerate in a satisfactory manner. We would therefore like to ask the question: to what extent does acquiring employment increase a poor household's probability of exiting poverty? Register data from the entire resident population of Norway serves as the basis for this analysis, which indicates that full-time does greatly increase the probability of exiting poverty. Part-time employment also has an effect, albeit a small one. Findings with respect to transfers are compatible with certain disincentives related to employment for single mothers, although similar results cannot be found for other types of households.

Keywords: Unemployment; Employment; Poverty (search for similar items in EconPapers)
JEL-codes: I32 J20 (search for similar items in EconPapers)
Date: 2004-07
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