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Financial hardship during unemployment in Norway: the impact of public and private income support
Author(s) -
Halvorsen K.
Publication year - 1997
Publication title -
scandinavian journal of social welfare
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.664
H-Index - 47
eISSN - 1468-2397
pISSN - 0907-2055
DOI - 10.1111/j.1468-2397.1997.tb00197.x
Subject(s) - unemployment , disadvantaged , economics , welfare , allowance (engineering) , labour economics , income support , compensation (psychology) , economic growth , psychology , operations management , psychoanalysis , market economy , macroeconomics
It is common to assume that long‐term unemployment no longer causes financial hardship because of generous welfare benefits. It is further assumed that unemployment benefits have eroded the traditional role of the family in protecting its members against hazards. This panel study of long‐term unemployed people in 1991‐1992 demonstrates the inadequacy of unemployment benefits and the importance of family support in reducing the risk of financial hardship. Vulnerable household types, such as single people and families with limited economic resources, at the outset seem unable to bear the personal risk of unemployment that is built into the benefit scheme. Persons disadvantaged at the outset risk a downward spiral because of long‐term unemployment. Especially during times of high unemployment, the compensation level is not optimal from a welfare point of view. Greater coverage and more generous unemployment benefits may help unemployed people to cope better financially and thus avoid applying for discretionary and highly stigmatized social assistance allowance.