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Measuring the effect of cash incentives on migrant integration in Norway: Early results from a quasi-experiment

Author

Listed:
  • Meng Le Zhang

    (Department of Social Science, University of Sheffield, Sheffield, United Kingdom.)

  • Henrik Lindegaard Andersen

    (Department of Economic Administrative Studies, Western Norway University of Applied Sciences, Haugesund, Norway.)

  • henrik.lindegaard.andersen@hvl.no

    (Department of Economic Administrative Studies, Western Norway University of Applied Sciences, Haugesund, Norway.)

Abstract

The Norwegian Introduction Programme (NIP) is a flagship social policy for integrating migrants into Norwegian society. NIP is a two-year programme of full-time education and training. As part of NIP, a special benefit (Introduksjonsstønad) is paid to attendees to incentive participation. The Introduksjonsstønad is substantial, and it increases by 50% when participants reach age 25 (from approx. €12,860 to €19,290). Accounting for age, we find that increasing the Introduksjonsstønad results in increased NIP participation. Despite increasing cost and participation, we do not find any evidence of increased labour market outcomes. Norway’s approach to integration is both ambitious and expensive however our early findings show that NIP may not be effective. Given the importance of integration in Norway and the role of NIP, we suggest that further research needs to be done into credible alternatives or improvements to NIP and the Introduksjonsstønad.

Suggested Citation

  • Meng Le Zhang & Henrik Lindegaard Andersen & henrik.lindegaard.andersen@hvl.no, 2023. "Measuring the effect of cash incentives on migrant integration in Norway: Early results from a quasi-experiment," Working Papers 2023003, The University of Sheffield, Department of Economics.
    • Handle: RePEc:shf:wpaper:2023003
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    File URL: https://www.sheffield.ac.uk/economics/research/serps
    File Function: First version, January 2023
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    More about this item

    Keywords

    Conditional Cash Transfer; Migrants; Integration; Norwegian Introduction Programme; Quasi-experiment; Regression Kink Design;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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