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

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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 of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8245
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    References listed on IDEAS

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    Cited by:

    1. van der Klaauw, Bas & Ziegler, Lennart, 2019. "A Field Experiment on Labor Market Speeddates for Unemployed Workers," CEPR Discussion Papers 13516, C.E.P.R. Discussion Papers.
    2. Joyce, Patrick, 2018. "Inspiration for integration. Labour market policies for refugees in five Northern European countries," Ratio Working Papers 308, The Ratio Institute.
    3. Hernæs, Øystein & Markussen, Simen & Røed, Knut, 2017. "Can welfare conditionality combat high school dropout?," Labour Economics, Elsevier, vol. 48(C), pages 144-156.
    4. Antonia Asenjo & Verónica Escudero & Hannah Liepmann, 2024. "Why Should we Integrate Income and Employment Support? A Conceptual and Empirical Investigation," Journal of Development Studies, Taylor & Francis Journals, vol. 60(1), pages 1-29, January.
    5. Monique De Haan & Ragnhild C. Schreiner, 2018. "The Intergenerational Transmission of Welfare Dependency," RF Berlin - CReAM Discussion Paper Series 1810, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    6. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Gielen, Anne C., 2020. "The Intergenerational Effects of Requiring Unemployment Benefit Recipients to Engage in Non-Search Activities," IZA Discussion Papers 13618, Institute of Labor Economics (IZA).
    7. Pignatti Clemente & Van Belle Eva, 2021. "Better together: Active and passive labor market policies in developed and developing economies," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-27, January.
    8. Cheng Lin & Adel Daoud & Maria Branden, 2022. "To What Extent Do Disadvantaged Neighborhoods Mediate Social Assistance Dependency? Evidence from Sweden," Papers 2206.04773, arXiv.org, revised Aug 2022.
    9. Luis Ayala & Mariya Melnychuk, 2024. "Differential Effects of Expansions and Recessions on Social Assistance Duration: The Case of Regional Minimum Income Programmes in Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 248(1), pages 115-141, March.
    10. Mörk, Eva & Ottosson, Lillit & Vikman, Ulrika, 2021. "To work or not to work? Effects of temporary public employment on future employment and benefits," Working Paper Series 2021:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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    More about this item

    Keywords

    treatment effects; social insurance; vocational rehabilitation; poverty; program evaluation;
    All these keywords.

    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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