Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

No 01/2004: To What Extent Is a Transition into Employment Associated with an Exit from Poverty?

Taryn Ann Galloway ()
Additional contact information
Taryn Ann Galloway: Research Department, Statistics Norway, Postal: Postboks 8131 Dep, 0033 Oslo, Norway

Abstract: A link between lack of employment and poverty is often made implicitly, but can rarely be enumerated in any sort of satisfactory manner. We would therefore like to ask the question: to what extent does acquiring employment increase a poor household’s probability of exiting poverty? Register data from the entire resident population of Norway serves as the basis for the analysis. We distinguish between full-time and part-time employment and also include an investigation into the effect transfers have on the probability of exiting poverty,with or without a concurrent change in employment status. Norway with its generous social welfare system and well-functioning labor markets provides a unique opportunity to abstract to a certain extent from many complicating factors in investigating these questions.

Keywords: Unemployment; Employment; Poverty

JEL-codes: I32; J20

34 pages, February 4, 2004

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