Making Activation for Young Welfare Recipients Mandatory
Link to article:
Authors:
Dahl, Espen S., Øystein M. Hernæs
Year:
2022
Reference:
LABOUR: Review of Labour Economics and Industrial Relations
Summary
Activation policies to promote self-sufficiency among recipients of welfare and other types of benefits are becoming more common in many welfare states. We evaluate a law change in Norway making welfare receipt conditional on participation in an activation program for all welfare recipients below the age of 30. Analyzing the program’s staggered implementation across municipalities with several modern event study estimators, we estimate that the law change had quite precise 0-effects on benefit receipt, work and education. We also do not find any effects on the probability of being out of work or of being in employment, education or labor market programs. Qualitative evidence suggests that the zero effect may be due to the law change only impacting the participation of recipients with low expected gain from activation.
JEL:
H55; I38; J18
Keywords:
Social assistance; activation; conditionality; welfare reform; labor
Project:
Oppdragsgiver: NAV via ISFOppdragsgivers prosjektnr.: ISF: 10278 NAV:17-4667
Frisch prosjekt: 1423 - Mandatory activation for welfare recipients below age 30
