Are lone mothers responsive to policy changes? The effects of a Norwegian workfare reform on earnings, education and poverty
AbstractThe generous Nordic model of welfare is commonly viewed as an exceptional success, in terms of both equality and economic growth. However, it recently became evident that subgroups of the population with weak labour market attachment and high welfare dependency, such as lone mothers, were vastly overrepresented among the poor. This prompted a workfare reform of the Norwegian welfare system for lone mothers: activity requirements were brought in, time limits imposed and benefit levels raised. To evaluate the reform we introduce an estimator that, unlike the much used difference-in-difference approach, accounts for the fact that policy changes are typically phased in gradually rather than coming into full effect immediately. The results were striking: the workfare reform has not only led to increased earnings and educational attainment but also reduced poverty.
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Bibliographic InfoPaper provided by "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi in its series Working Papers with number 008.
Length: 27 pages
Date of creation: Oct 2008
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Other versions of this item:
- Chiara Pronzato & Magne Mogstad, 2008. "Are Lone Mothers Responsive to Policy Changes? The Effects of a Norwegian Workfare Reform on Earnings, Education and Poverty," CHILD Working Papers wp14_08, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Mogstad, Magne & Pronzato, Chiara D., 2009. "Are Lone Mothers Responsive to Policy Changes? Evidence from a Workfare Reform in a Generous Welfare State," IZA Discussion Papers 4489, Institute for the Study of Labor (IZA).
- Magne Mogstad & Chiara Pronzato, 2008. "Are Lone Mothers Responsive to Policy Changes? The Effects of a Norwegian Workfare Reform on Earnings, Education, and Poverty," Discussion Papers 533, Research Department of Statistics Norway.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J00 - Labor and Demographic Economics - - General - - - General
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