Scandinavian Working Papers in Economics

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

No 03/13: GETTING PEOPLE INTO WORK: WHAT (IF ANYTHING) CAN JUSTIFY MANDATORY ACTIVATION OF WELFARE RECIPIENTS?

Anders Molander () and Gaute Torsvik ()
Additional contact information
Anders Molander: Oslo and Akershus University College of applied Sciences, Postal: Oslo and Akershus University College, of Applied Sciences, Postboks 4 St. Olavs plass, NO-0130 Oslo, Norway
Gaute Torsvik: Department of Economics, University of Bergen, Postal: University of Bergen, Department of Economics , Postboks 7802 , Fosswinckelsgate 14, NO-5020 BERGEN

Abstract: So-called activation policies aiming at bringing jobless people into work have been a central component of welfare reforms across OECD countries during the last decades. Such policies combine restrictive and enabling programs, but their characteristic feature is that also enabling programs are mandatory, and non-compliers are sanctioned. There are four main arguments that can be used to defend mandatory activation of benefit recipients. We label them efficiency, sustainability, paternalism, and justice. Each argument is analyzed in turn and according to a strict scheme. First we clarify which standards it invokes. Thereafter we evaluate each argument according to its own standards Finally we introduce competing normative concerns that have to be taken into account. In the conclusion we discuss possible constellations of arguments that make up the normative space for activation policies.

Keywords: work-welfare; social transfers; labour productivity; screening

JEL-codes: I38; J24

37 pages, June 12, 2013

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