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The Impact of a Cash Benefit Reform on Parents’ Labour Force Participation


  • Naz, Ghazala

    () (University of Bergen, Department of Economics)


This paper evaluates the impact of a recent Norwegian family policy reform. The reform provides benefits of up to NOK 3000 per month to all families with 1-3 year old children, who do not utilise state subsidised day care centres. We investigate the reform’s effect on parents’ labour force participation. Our findings suggest that, on average, women’s labour force participation decreases and specialisation of work between couples increases after the reform. When we evaluate the reform’s impact in association with women’s schooling we find that the decrease in the labour force participation of mothers who have university level schooling is larger as compared with mothers who have less than university schooling.

Suggested Citation

  • Naz, Ghazala, 2002. "The Impact of a Cash Benefit Reform on Parents’ Labour Force Participation," Working Papers in Economics 12/02, University of Bergen, Department of Economics.
  • Handle: RePEc:hhs:bergec:2002_012

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    References listed on IDEAS

    1. ûivind Anti Nilsen & Alf Erling Risa & Alf Torstensen, 2000. "Transitions from employment among young Norwegian workers," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 21-34.
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    More about this item


    Public policy; Cash benefits; Specialisation;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply


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