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Compulsory activation of young welfare recipients: revisiting the trade-off between workfare and welfare generosity

Year: 2025

Type: article

Abstract: We revisit the trade-off between workfare and welfare through a quasi-natural experiment by exploiting municipal variation from a 2017 Norwegian reform introducing compulsory activation for young welfare recipients. The results show a significant negative effect on social assistance. On the other hand, we find no effect on income adequacy, implying that other transfers mitigate the drop in social assistance. Our results convey therefore that the trade-off between workfare and welfare is binding when focusing exclusively on social assistance: investing in activation policies creates challenges to poverty alleviation channeled through the last social safety net. However, the trade-off is mitigated through other transfers, allowing us to conclude that social investment does not need to be inimical to the poor.

Source: Socio-Economic Review

DOI: 10.1093/ser/mwaf069

Authors: Bård Smedsvik, Roberto Iacono

Institutions: Norwegian University of Science and Technology, NTNU Samfunnsforskning, London School of Economics and Political Science

Language: English

Topic: Gender, Labor, and Family Dynamics

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDGs: No poverty, Reduced inequalities, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,718