This report examines how cash benefits, employment-oriented measures and public services affect the living conditions and developmental opportunities of children in families with persistent low income. The analyses are based on extensive register data from SSB, combined with econometric methods to isolate the effects of the measures. For parents, we mainly study labour market participation, working hours and receipt of public benefits. For children, we focus primarily on school performance but also analyse contact with the child welfare services and longer-term outcomes such as income, education and employment in adulthood. Although these outcomes are central, they do not cover all aspects of children's and parents' welfare. The results moreover apply to the individuals, periods and contexts included in the analyses, and must be interpreted considering these limitations.
Limited effects of direct cash benefits
We analyse three schemes primarily intended to strengthen families' incomes directly: child benefit, housing benefit and social assistance. Child benefit is a universal benefit, but accounts for a relatively larger share of disposable income for low-income families. The increase in the age limit from 16 to 18 years in 2000 provides indications of higher completion rates in upper secondary education and reduced use of social assistance in the municipalities, but the findings are uncertain. Housing benefit mainly reaches families with complex living-condition challenges, characterised by low earned income, low rates of home ownership, more children, more single parents and a higher share with an immigrant background. Increased rates following the municipal mergers in 2020 led to lower use of social assistance but produced no measurable effects on labour supply. Applicants for social assistance generally have weak labour market attachment and low incomes, and the benefit is primarily used to stabilise everyday household finances. We find no clear effects on parents' labour market attachment, children's school results or contact with the child welfare services, although the uncertainty in the estimates does not rule out moderate effects. Overall, the benefits appear to stabilise households' finances, while there is also a degree of substitution between schemes: increased support from one benefit may be followed by reduced support from others.
No clear effects of exposure to the Qualification Programme
The Qualification Programme (KVP) combines an activity requirement with a relatively generous benefit for people over the age of 18 who need support to enter employment. The programme may include employment-oriented measures, training, individual follow-up and guidance, and is tailored to each participant's needs. Using an event-study approach based on the municipal-level rollout in 2008–2010, we find indications of a positive effect on children's school performance, particularly when children are exposed at an early age. The effect appears to be linked to increased income and financial stability in the family, and we also find lower receipt of social assistance and somewhat stronger labour market attachment among the parents. The findings are nevertheless uncertain, and KVP was introduced as part of a broader welfare reform, which makes it difficult to isolate the effect of the programme itself.
Increased participation in kindergarten may require measures other than reduced prices
Norway has three national schemes that reduce parental payment: a maximum price, income-graded parental payment and free core hours. These are an important reason for the high rate of kindergarten attendance in Norway. Nevertheless, our analyses show, for the first time at the national level, that families who do not use kindergarten generally have lower income, wealth and education, and are more often single parents, recipients of social assistance or have an immigrant background. We find the lowest participation rates among the 10 per cent poorest households – precisely the group that the reduction schemes are aimed at. Finances are thus not the only barrier; language, trust in the service, access to information, cultural norms and practical factors such as application processes and admission rules also play a role. There is therefore a need for measures beyond price reductions, such as targeted information, early recruitment and closer cooperation between NAV, public health clinics, child welfare services, schools and kindergartens.
Close follow-up in upper secondary education may be important
Many young people who are not in employment or education lack completed upper secondary education. We evaluate two measures for closer follow-up: NAV advisers in upper secondary education and social work advisers from the municipalities placed in upper secondary schools in Østfold. Both show consistently positive effects on the likelihood of completing upper secondary education, although the uncertainty is considerable. Social work advisers have a clear positive effect once the role has been established at the school for some time. We do not, however, find signs of a lasting reduction in inactivity in adulthood. Closer follow-up may thus increase completion rates without this necessarily leading to stronger attachment to work or education later on – for some pupils, completed upper secondary education is not sufficient to secure stable participation in working life.