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dc.contributor.authorDrange, Ida
dc.contributor.authorJakobsson, Niklas
dc.date.accessioned2018-05-25T12:09:53Z
dc.date.accessioned2018-08-22T13:16:50Z
dc.date.available2018-05-25T12:09:53Z
dc.date.available2018-08-22T13:16:50Z
dc.date.issued2018
dc.identifier.citationDrange I, Jakobsson N. Incentive effects of cash benefits among young people. A natural experiment from Norway. Journal of Social Policy. 2018en
dc.identifier.issn0047-2794
dc.identifier.issn1469-7823
dc.identifier.urihttps://hdl.handle.net/10642/6081
dc.description.abstractPrior research on active labour market programmes (ALMPs) for young people has revealed either no effect or negative effects on transition rates into employment. In addition to accessing the programme content, participation in ALMPs bestows the right to a supplementary benefit. Yet, the direct effect of this benefit on the use and outcome of ALMPs remains largely unknown. We study the effects of a Norwegian policy that pays much higher benefits to recipients when they reach 19 years of age. This policy provides a natural experimental setting that allows us to utilise the age discontinuity to observe whether young people are more likely to become benefit recipients after their nineteenth birthday, and to estimate the effect of benefits on the labour supply. As age determines the increase in benefits rather than need, it creates a random and exogenous variation in the criteria for allocating cash benefits. We use Norwegian administrative register data that cover all 18 to 19 year olds during the period 2003 to 2012. We find no effect on programme take-up or employment rates. Hence, benefits do not work against the aim of ALMPs and young people's responsiveness to financial incentives cannot explain such programmes’ lack of effects.en
dc.description.abstractPrior research on active labour market programmes (ALMPs) for young people has revealed either no effect or negative effects on transition rates into employment. In addition to accessing the programme content, participation in ALMPs bestows the right to a supplementary benefit. Yet, the direct effect of this benefit on the use and outcome of ALMPs remains largely unknown. We study the effects of a Norwegian policy that pays much higher benefits to recipients when they reach 19 years of age. This policy provides a natural experimental setting that allows us to utilise the age discontinuity to observe whether young people are more likely to become benefit recipients after their nineteenth birthday, and to estimate the effect of benefits on the labour supply. As age determines the increase in benefits rather than need, it creates a random and exogenous variation in the criteria for allocating cash benefits. We use Norwegian administrative register data that cover all 18 to 19 year olds during the period 2003 to 2012. We find no effect on programme take-up or employment rates. Hence, benefits do not work against the aim of ALMPs and young people's responsiveness to financial incentives cannot explain such programmes’ lack of effects.en
dc.language.isoenen
dc.publisherCambridge University Press (CUP)en
dc.rightsThis article has been published in a revised form in Journal of Social Policy [http://dx.doi.org/10.1017/S0047279418000302]. This version is free to view and download for private research and study only. Not for re-distribution, re-sale or use in derivative works. © copyright holder.en
dc.subjectEmploymenten
dc.subjectYoung peopleen
dc.subjectLabour market programmesen
dc.titleIncentive effects of cash benefits among young people. A natural experiment from Norwayen
dc.typeJournal articleen
dc.typePeer revieweden
dc.date.updated2018-05-25T12:09:53Z
dc.description.versionacceptedVersionen
dc.identifier.doihttps://doi.org/10.1017/S0047279418000302
dc.identifier.cristin1578371
dc.source.journalJournal of Social Policy


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