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Making Activation for Young Welfare Recipients Mandatory

Author

Listed:
  • Dahl, Espen S.

    (University of Oslo)

  • Hernaes, Øystein

    (Ragnar Frisch Centre for Economic Research)

Abstract

Activation policies to promote self-sufficiency among recipients of welfare and other types of benefits are becoming more common in many welfare states. We evaluate a law change in Norway making welfare receipt conditional on participation in an activation program for all welfare recipients below the age of 30. Analyzing the program's staggered implementation across municipalities with several modern event study estimators, we estimate that the law change had quite precise 0-effects on benefit receipt, work and education. We also do not find any effects on the probability of being out of work or of being in employment, education or labor market programs. Qualitative evidence suggests that the zero effect may be due to the law change only impacting the participation of recipients with low expected gain from activation.

Suggested Citation

  • Dahl, Espen S. & Hernaes, Øystein, 2022. "Making Activation for Young Welfare Recipients Mandatory," IZA Discussion Papers 15170, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp15170
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    References listed on IDEAS

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    Cited by:

    1. Smedsvik, Bård & Iacono, Roberto, 2022. "(In)visible sanctions: micro-level evidence on compulsory activation for young welfare recipients," INET Oxford Working Papers 2022-24, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.

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    Keywords

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    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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