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

Abstract: We analyse the economic impacts of Norwegian nationwide reforms on the state benefit programme targeting single mothers and derive the net fiscal impacts of the reforms on both the affected single mothers and public expenses. Our analysis accounts for behavioural reform responses by single mothers in terms of benefit substitution and labour supply. We find that for each 100-NOK reduction in benefit payments from the programme, single mothers replace approximately 60 NOK through benefit substitution. In the short term, we find a sizeable positive reform effect on single mothers’ labour supply and earnings. However, the positive labour supply response diminishes drastically in the long term. The reforms increase single mothers’ disposable income in the short term, but in the long term, we find no or even negative effects on disposable income. In terms of the net fiscal impact on public expenses, the reforms are successful. We estimate a total net gain of 3.56 billion NOK (37 million EUR) in public expenditures covering the 1998–2008 period.

Keywords: workfare reforms; single mothers; benefit substitution; public policy

JEL-codes: D19; H53; I38

52 pages, September 6, 2017

Full text files

wp%2004-17.pdf  Full text

Download statistics

• University of Bergen, Department of Economics
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Kjell Erik Lommerud ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:bergec:2017_004This page generated on 2024-10-27 22:37:47.