To What Extent Is a Transition into Employment Associated with an Exit from Poverty?
A link between lack of employment and poverty is often made implicitly, but can rarely be enumerated in any sort of 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 the analysis. We distinguish between full-time and part-time employment and also include an investigation into the effect transfers have on the probability of exiting poverty,with or without a concurrent change in employment status. Norway with its generous social welfare system and well-functioning labor markets provides a unique opportunity to abstract to a certain extent from many complicating factors in investigating these questions.
|Date of creation:||04 Feb 2004|
|Date of revision:|
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- Haveman, Robert & Buron, Lawrence, 1993. "Escaping Poverty through Work: The Problem of Low Earnings Capacity in the United States, 1973-88," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(2), pages 141-58, June.
- Stephen P. Jenkins, 2000. "Modelling household income dynamics," Journal of Population Economics, Springer, vol. 13(4), pages 529-567.
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