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 primary 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. (JEL H55, I32, I38, J24)
Markussen, Simen, and Knut Røed.
"Leaving Poverty Behind? The Effects of Generous Income Support Paired with Activation."
American Economic Journal: Economic Policy,
Social Security and Public Pensions
Measurement and Analysis of Poverty
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Human Capital; Skills; Occupational Choice; Labor Productivity