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The Duration of Housing Allowance Claims and Labour Market Disincentives: The Norwegian Case

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  • Viggo Nordvik
  • PER ÅHRéN

Abstract

Housing allowances in Norway are meant to enable low-income households to increase, or maintain, their housing consumption. In order to identify low-income households and to ensure a desirable vertical equity, the allowances decrease as income rises. The marginal withdrawal of housing allowances as income increases is quite high. Interacting with the tax system this might potentially produce a dependency culture and a depressing effect on the supply of labour.A dependency culture would yield long spells as recipients of housing allowances. This paper demonstrates that this is not the case for single parents and families with children. Around 30 per cent of the receivers from these groups drop out of the system every year. Furthermore the hazards (probability of dropping out) seem to be independent of the length of the claim.

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  • Viggo Nordvik & PER ÅHRéN, 2005. "The Duration of Housing Allowance Claims and Labour Market Disincentives: The Norwegian Case," European Journal of Housing Policy, Taylor and Francis Journals, vol. 5(2), pages 131-146.
    • Handle: RePEc:taf:eurjhp:v:5:y:2005:i:2:p:131-146
    DOI: 10.1080/14616710500162608
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    References listed on IDEAS

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    1. Han, Aaron & Hausman, Jerry A, 1990. "Flexible Parametric Estimation of Duration and Competing Risk Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 1-28, January-M.
    2. Shroder, Mark, 2002. "Does housing assistance perversely affect self-sufficiency? A review essay," Journal of Housing Economics, Elsevier, vol. 11(4), pages 381-417, December.
    3. Murray, Michael P, 1994. "How Inefficient Are Multiple In-Kind Transfers?," Economic Inquiry, Western Economic Association International, vol. 32(2), pages 209-227, April.
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    Cited by:

    1. Chen, Jie, 2006. "The Dynamics of Housing Allowance Claims in Sweden: A discrete-time hazard analysis," Working Paper Series 2006:1, Uppsala University, Department of Economics.

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