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04-04-19
Timo Verlaat
Utrecht University School of Economics
Experimenting with Income Support
in the Netherlands
Seminar:...
(1) Introduction
(2) The experiments
(3) Status quo & outlook
04-04-19
Outline
3
Introduction
Social welfare in the Netherlands
04-04-19 4
• Lowest social security layer
• Means-tested benefit
• ~1,000€ ...
Introduction
Why experiment?
• January 2015: Welfare reform (Participation Act)
• Tightening of social security regulation...
Introduction
A movement of experimenting cities*
*In the beginning, more than 40 Dutch
cities were planning to experiment....
(1) Introduction
(2) The experiments
(3) Status quo & outlook
04-04-19
Outline
7
The experiments
Theoretical framework
04-04-19 8
What can we learn from behavioral sciences?
Scarcity and poverty stress a...
The experiments
Fast facts
• Cooperation between cities and local universities
• Randomised Controlled Trial with current ...
The experiments
Generic experimental groups*
04-04-19
Treatment 2: Intensive support
• Tailormade supervision and intensiv...
The experiments
Practical implementation
04-04-19
Average contact moments per group*
[in person & remote; initiated by wel...
The experiments
Outcomes of interest
04-04-19
Labour market outcomes
• Employment
• Earnings, hours, contracts Register da...
The experiments
Evaluation on the national level
04-04-19 13
Differences between cities with regards to:
• Status quo regi...
(1) Introduction
(2) The experiments
(3) Status quo & outlook
04-04-19
Outline
14
Status quo & outlook
Where are we standing at the moment?
04-04-19 15
End of 2017
Start
April 2019
6 months to go
October ...
Status quo & outlook
What’s happening next?
• Experiments in all six cities finish on October 1st, 2019
• First results ex...
04-04-19
Thank you for your attention.
Timo Verlaat
Utrecht University School of Economics (U.S.E.)
t.l.l.verlaat@uu.nl
@t...
Experimenting with Income Support in the Netherlands
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Experimenting with Income Support in the Netherlands

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Timo Verlaat: Experimenting with Income Support in the Netherlands. Presentation at seminar "Finnish Basic Income Experiment – Science meets social security reform" in Kela 4.4.2019.

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Experimenting with Income Support in the Netherlands

  1. 1. 04-04-19 Timo Verlaat Utrecht University School of Economics Experimenting with Income Support in the Netherlands Seminar: Finnish Basic Income Experiment – Science meets social security reform Helsinki, 4 April 2019
  2. 2. (1) Introduction (2) The experiments (3) Status quo & outlook 04-04-19 Outline 3
  3. 3. Introduction Social welfare in the Netherlands 04-04-19 4 • Lowest social security layer • Means-tested benefit • ~1,000€ / month for single person household • Job search requirements and sanctions • On top: child, housing & healthcare allowances National government Establishing legal framework Municipalities Executing the scheme
  4. 4. Introduction Why experiment? • January 2015: Welfare reform (Participation Act) • Tightening of social security regulations • Reform discontents many Dutch municipalities • But: article on policy experiments 04-04-19 Is there another way? 5
  5. 5. Introduction A movement of experimenting cities* *In the beginning, more than 40 Dutch cities were planning to experiment. Eventually, six cities remained. 04-04-19 6
  6. 6. (1) Introduction (2) The experiments (3) Status quo & outlook 04-04-19 Outline 7
  7. 7. The experiments Theoretical framework 04-04-19 8 What can we learn from behavioral sciences? Scarcity and poverty stress affect people‘s mindset (Mullainathan & Shafir, 2013; Mani et al., 2013) Crowding out of intrinsic motivation (Deci, 1971; Frey & Jegen, 2001) Reciprocity and fairness concerns (Fehr & Schmidt, 2000; Thaler, 1980)
  8. 8. The experiments Fast facts • Cooperation between cities and local universities • Randomised Controlled Trial with current social welfare recipients • Duration of 1.5 - 2 years • Groups of 100-200 subjects depending on experiment • Voluntary participation 04-04-19 9
  9. 9. The experiments Generic experimental groups* 04-04-19 Treatment 2: Intensive support • Tailormade supervision and intensive mediation • Approx. twice as much contact moments Control • No changes; status quo regime Treatment 3: Earnings release • Earnings on top of benefits are released more generously • Keep 50% of income up to 202€/month Treatment 1: Exemption • No compliance requirement & benefit sanctions • Autonomy with regards to reintegration activities 10 *As approved by the Ministry of Social Affairs and Employment. Combinations of groups are possible.
  10. 10. The experiments Practical implementation 04-04-19 Average contact moments per group* [in person & remote; initiated by welfare department] *Example from Utrecht experiment 11
  11. 11. The experiments Outcomes of interest 04-04-19 Labour market outcomes • Employment • Earnings, hours, contracts Register data Participation & social activation • Activities • Social contacts Health & well-being • Overall health, mental health, stress • Well-being measures Satisfaction w/ scheme • Satisfaction w/ rules • Satisfaction w/ municipality Financial situation • Perceived situation Survey data 1. Baseline 2. Midline 3. Endline 4. [Post-experiment] 12
  12. 12. The experiments Evaluation on the national level 04-04-19 13 Differences between cities with regards to: • Status quo regime • Combination of treatments • Start of experiment But, harmonisation of: • Target group • Outcome measures and surveys • Evaluation strategy (common pre-analysis plan)
  13. 13. (1) Introduction (2) The experiments (3) Status quo & outlook 04-04-19 Outline 14
  14. 14. Status quo & outlook Where are we standing at the moment? 04-04-19 15 End of 2017 Start April 2019 6 months to go October 1, 2019 Experiments end Baseline Midline Endline
  15. 15. Status quo & outlook What’s happening next? • Experiments in all six cities finish on October 1st, 2019 • First results expected in February 2020 • Evaluation on national level and comparison between cities after February 2020 04-04-19 16
  16. 16. 04-04-19 Thank you for your attention. Timo Verlaat Utrecht University School of Economics (U.S.E.) t.l.l.verlaat@uu.nl @timoverlaat 17

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