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

Markussen, Simen; Røed, Knut

doi:10.1257/pol.20140334

Cited by 20 publications

(19 citation statements)

References 26 publications

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“…The effect on cumulative total income is small and not significantly different from zero. This concurs with Markussen and Røed (2016), who find increased job finding of an activation program for welfare recipients without increased income. The increased earnings can be driven by a higher likelihood to be employed, more working hours, and/or a higher hourly wage.…”

Section: B Earnings Total Income and Other Benefitssupporting

confidence: 88%

“…Bitler, Gelbach, and Hoynes (2006) show that Connecticut's job first program, which reduces lifetime welfare benefits receipt to 21 months and substantially reduces the marginal tax rate, has an earnings effect between −US$300 and $500 with a mean of $82. Markussen and Røed (2016) consider an extensive activation program combined with income support for potential welfare recipients and find that after 4 years participation increases employment rates by 18 percentage points. Because the employment concerns small, poorly paid jobs, income effects are at most modest.…”

mentioning

confidence: 99%

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Job Search Periods for Welfare Applicants: Evidence from a Randomized Experiment

Bolhaar

Ketel

Klaauw

2019

American Economic Journal: Applied Economics

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We combine a randomized experiment with administrative data to study the effects of mandatory job search periods in the Dutch welfare system. Job search periods postpone the first welfare benefits payment and encourage applicants to start searching for jobs actively. Job search periods substantially reduce benefits take up. The decline in benefits receipt is permanent, but fully compensated by increased earnings because of higher reemployment rates. We do not find detectable effects on health and crime outcomes, nor do we observe income declines for more vulnerable applicants. Our results suggest that job search periods are an effective instrument for targeting benefits to welfare applicants. (JEL C93, I38, J31, J64)

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Section: B Earnings Total Income and Other Benefitssupporting

confidence: 88%

mentioning

confidence: 99%

Job Search Periods for Welfare Applicants: Evidence from a Randomized Experiment

Bolhaar

Ketel

Klaauw

2019

American Economic Journal: Applied Economics

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“…Intuitively, for a local shift in individual outcomes to be interpreted as causally related to the introduction of conditionality, it is not sufficient that the shift is larger in reforming than in non-reforming municipalities; the differences also needs to be positively correlated to individual predicted exposure risks. Our empirical strategy is similar to the approach used by Markussen and Røed (2015) to evaluate another social program with a small, but imperfectly identifiable, target group.…”

Section: Empirical Analysismentioning

confidence: 99%

Can welfare conditionality combat high school dropout?

Hernaes

Markussen²,

Røed³

2017

Labour Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I EIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Based on administrative data, we analyze empirically the effects of stricter conditionality for social assistance receipt on welfare dependency and high school completion rates among Norwegian youths. Our evaluation strategy exploits a geographically differentiated implementation of conditionality. The causal effects are identified on the basis of larger-thanexpected within-municipality changes in outcomes that not only coincide with the local timing of conditionality implementation, but do so in a way that correlates with individual ex ante predicted probabilities of becoming a social assistance claimant. We find that stricter conditionality significantly reduces welfare claims and increases high school completion rates.JEL Classification: H55, I29, I38, J18

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“…Tidligere forskning viser at aktivitetskrav kan ha positive effekter på sysselsetting (se for eksempel Markussen & Røed 2016;Hernaes, Markussen & Røed 2017;Hernaes 2018), men det vil sannsynligvis vaere vesentlig 'effektheterogenitet' (Rønsen & Skarðhamar 2009) siden mottakere av sosialhjelp er en svaert variert gruppe (Dahl & Lorentzen 2003). Noen trenger bare økonomisk hjelp en kort periode før de blir selvforsørgende (igjen), som oftest gjennom lønnsarbeid eller videre utdanningsløp.…”

Section: Bakgrunn Og Tidligere Forskningunclassified

“…I 2008 lanserte myndighetene Kvalifiseringsprogrammet. Programmet rekrutterte personer som står i fare for å bli, eller var blitt, avhengig av økonomisk sosialhjelp (Markussen & Røed 2016). Formålet var å bidra til at flere kom over i arbeid og aktivitet ved hjelp av et individuelt tilrettelagt tilbud, som omfatter tett oppfølging og arbeidsrettet trening og praksis gjennom arbeidsmarkedstiltak.…”

Section: Institusjonell Kontekstunclassified