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Leaving Poverty Behind? The Effects of Generous Income Support Paired with Activation

Author

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  • Markussen, Simen

    () (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    () (Ragnar Frisch Centre for Economic Research)

Abstract

We evaluate a comprehensive activation program in Norway targeted at hard-to-employ social assistance claimants with reduced work capacity. The program offers a combination of tailored rehabilitation, training and job practice, and a generous, stable, and non-means-tested benefit. Its main aims are to mitigate poverty and subsequently promote self-supporting employment. Our evaluation strategy exploits a geographically staggered program introduction, and the causal effects are identified on the basis of changes in employment prospects that coincide with local program implementation in a way that correlates with the predicted probability of becoming a participant. We find that the program raised employment prospects considerably.

Suggested Citation

  • Markussen, Simen & Røed, Knut, 2014. "Leaving Poverty Behind? The Effects of Generous Income Support Paired with Activation," IZA Discussion Papers 8245, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp8245
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    References listed on IDEAS

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    Cited by:

    1. Hernæs, Øystein & Markussen, Simen & Røed, Knut, 2017. "Can welfare conditionality combat high school dropout?," Labour Economics, Elsevier, vol. 48(C), pages 144-156.

    More about this item

    Keywords

    treatment effects; social insurance; vocational rehabilitation; poverty; program evaluation;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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