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

Simen Markussen and Knut Røed.

IZA Discussion Paper No. 8245, June 2014.

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-meanstested benefit. Its main aims are to mitigate poverty and subsequently promote selfsupporting 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.

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Published Aug. 5, 2015 10:09 AM - Last modified Jan. 26, 2019 4:07 AM