Norway to test tax cuts on youth in job market study

Norway plans to randomly select 100,000 individuals born between 1990 and 2005 to receive annual tax cuts of up to $2,700 as part of a government study on employment and income, Reuters reported.

The Labour Party initiative, announced Tuesday, aims to evaluate whether tax incentives can boost workforce participation among young adults. The selected group will be compared to a control group not receiving the cuts.

If approved by parliament, the program will run for three to five years and cost an estimated $49 million annually. Norway’s government hopes the data will inform future labour policy amid worker shortages and rising social costs.