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.
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Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number
382.
Find related papers by JEL classification: I - Health, Education, and Welfare J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
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