Scandinavian Working Papers in Economics
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Department of Economics, University of Bergen Working Papers in Economics, Department of Economics, University of Bergen

No 12/02:
The Impact of a Cash Benefit Reform on Parentsí Labour Force Participation.

Ghazala Naz ()

Abstract: This paper evaluates the impact of a recent Norwegian family policy reform. The reform provides benefits of up to NOK 3000 per month to all families with 1-3 year old children, who do not utilise state subsidised day care centres. We investigate the reformís effect on parentsí labour force participation. Our findings suggest that, on average, womenís labour force participation decreases and specialisation of work between couples increases after the reform. When we evaluate the reformís impact in association with womenís schooling we find that the decrease in the labour force participation of mothers who have university level schooling is larger as compared with mothers who have less than university schooling.

Keywords: Public policy; Cash benefits; Specialisation; (follow links to similar papers)

JEL-Codes: I38; J16; J22; (follow links to similar papers)

20 pages, April 30, 2002

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