The sizes of minimum income schemes vary significantly even in welfare states that are considered similar. For example among Nordic countries, the share of recipients is almost double in Finland compared to Nordic peers. Considering the strong political will to diminish the receipt of last-resort benefits, we demonstrate a methodological framework to evaluate the reasons for varying number of beneficiaries and apply it to two Nordic countries, Finland and Sweden. By using microsimulation of eligibility rates, we examine the role of social assistance legislation, first-tier benefits and non-take-up. Relatively high number of beneficiaries in Finland is traced back to social assistance policies such as higher norm levels and earning disregard but also to lower non-take-up rate of social assistance benefits, which potentially reflects looser discretion and asset test. We also find some, albeit weak, evidence that the implementation reform of social assistance in Finland 2017 has further reduced non-take-up.
Smaller net or just fewer to catch? Disentangling the causes for the varying sizes of minimum income schemes