Welfare Sanctions and Deprivation in Germany: Do First Sanctions Lead to Higher Levels of Deprivation Among the Long-Term Unemployed and Recipients of Basic Income Support?

In Germany, as in many other European countries, vast changes in the welfare regime – towards workfare – have taken place. As a central activating element of workfare, sanctions were introduced to take effect by temporarily increasing deprivation through benefit cuts. This paper provides first quantitative insights on the effect of first sanctions on deprivation and contributes to the recent debate on the (un)constitutionality of sanctions, which re-emerged after a verdict of the Federal Constitutional Court, criticizing the lack of knowledge about the effects of sanctions on those affected. We implement a difference-in-differences propensity score matching approach that addresses selection on observables and individual time constant unobserved differences. High data accuracy is ensured by combining the “Panel Labour Market and Social Security” (PASS) with administrative data from the Federal Employment Agency. The results illustrate a slightly higher yet statistically insignificant level of deprivation for first-sanctioned unemployment/basic income recipients compared to non-sanctioned recipients. The results hint in the direction that higher levels of deprivation are not what activates the sanctioned beneficiaries to reintegrate into the labour market. We discuss whether the results imply a significant deviation from the socio-cultural subsistence minimum of sanctioned recipients and a failure of the welfare state.

Improving Take-Up by Reaching Out to Potential Beneficiaries. Insights from a Large-Scale Field Experiment in Belgium

Non-take-up of means-tested benefits is a widespread phenomenon which undermines the effectiveness and fairness of social policies. The digitalisation of the welfare state creates new opportunities for proactively contacting people who are potentially entitled to benefits, but do not take up their social rights. In this study, we report on how new data flows were used to reach out to potential beneficiaries of the Increased Reimbursement of health care, a programme targeted at low-income households in Belgium. By randomizing the period in which potential beneficiaries were contacted, we were able to identify a three- to four-fold increase in take-up among those contacted as a result of the outreaching activities. Households that did not respond to the intervention, the never takers, have lower pre-intervention healthcare expenditures. This suggests that non-take-up was reduced primarily among those who would expect to benefit most from receiving the Increased Reimbursement. Exploiting the combination of rich administrative data with experimental evidence, we also find that early responders are mostly older and have higher historic health expenditures than late responders. Furthermore, results point to the need for balancing well the inclusiveness of the intervention with an increased number of applications by ineligible people.

Social Movements and Social Policy: New Research Horizons

Across the globe, movements are confronting states and elites, challenging inequalities and mobilising for greater justice, a stronger voice, and progressive policy changes. In this article, I bridge the divide between Social Policy and the interdisciplinary field of Social Movement Studies. I examine how and why social movements, as actors in policy fields and social movement theories, matter for social policy. I argue that research on social movements as actors and engagement with social movement theories can open new horizons in Social Policy research by advancing our understanding of the politics of policy from a global perspective and strengthening our analytical and explanatory frameworks of agency, ideas, and power in the study of continuity and change of policy.

What Curbs Social Investment? The Effect of Foreign Electoral Outcomes on Childcare Expenditure Levels

This study aims to deepen our understanding of social investment expansion proposing a political learning mechanism to link existing institutional and political explanations. When resources are limited, increased spending in social investment often comes at the expense of politically costly retrenchment of established social insurance policies. Previous studies suggest that this trade-off results in existing entitlements crowding out new policies, and that party ideology plays less of a role in determining social policy expansion. I argue that this is because parties face an electoral dilemma, as individual preferences for social investment and social insurance have been shown to differ between groups that partly overlap in their voting behaviour. Applying a policy diffusion framework to the analysis of childcare expenditure, this study proposes that policymakers learn from the political consequences of past decisions made by their foreign counterparts and update their policy choice accordingly. The econometric analysis of OECD data on childcare expenditure shows that governments tend to make spending decisions that follow those of ideologically similar cabinets abroad and that left-wing governments with a divided electorate tend to reduce childcare expenditure if a previous expansionary decision of a foreign incumbent is followed by an electoral defeat. The findings have implications for the study of the politics of social policy development.

The Street-Level Organisation in-between Employer Needs and Client Needs: Creaming Users by Motivation in the Norwegian Employment and Welfare Service (NAV)

Employer engagement is increasingly emphasised in the context of efforts to bring more disadvantaged people into work. A new approach in the Norwegian Employment and Welfare Service (NAV) combines demand-side and supply-side measures in a ‘combined workplace-oriented approach’. Through qualitative interviews with frontline staff – including job coaches following the Supported Employment (SE) method – the paper examines the intermediary role of the street-level organisation (SLO) through the targeted use of SE methods directed at young users and employers. The findings suggest that young users are ‘creamed by motivation’ into the SE programme, which can be explained by the importance the SLO places: on maintaining inter-organisational relationships with employers, on job coaches’ performance goals and the need to uphold an organisational structure in the SLO that seemingly works efficient to shift caseloads of young unemployed into work. Hence, creaming is not specific to outsourcing but can also occur when insourcing employer engagement services into a public SLO. Although relational work directed at both employers and young clients is seen as the benefit of a combined workplace-oriented approach, it appears a rather flimsy foundation for successful ALMPs unless supported by more structural demand-side measures.

Disability and Employment Policy in Canada: National Policy Variation for Working Age Individuals

This article analyses and compares disability policies for working-age individuals in Canada with a focus on the mode of policy provision and type of measure to determine the degree to which direct funding is used in this country. To consider policy diversity in this federal system, policies are compared using a mixed-methods approach. Using quantitative methods, federal, provincial and territorial policies are first compared using hierarchical cluster analysis. This provides evidence of three distinct clusters in Canada according to policy provision and measure type. In a second, qualitative analysis, the disability strategies of four provinces’ (British Columbia, Ontario, Newfoundland and Labrador and Quebec) are compared, to determine over arching policy orientations. Findings indicate that policy provision in Canada largely favours money over services. Furthermore, most provinces emphasize either health or integration measures over substantive measures. Despite these commonalities, significant variation persists across Canada. This extends to poverty and disability reduction strategies with two of the four provinces having a broader orientation while the other two provinces focus specifically on employment as a means of social inclusion. The article concludes with a discussion on the state of employment policies for individuals with a disability in Canada.

Financial inclusion in the digital banking age: Lessons from rural India

In the digital age, financial inclusion continues to be connected to social inclusion. While most personal financial transactions are shifting from cash currency to digital transactions, we must ensure that marginalized members of society are not unbanked and excluded from financial opportunities. Many countries are declaring their intention to transform to cashless societies. India is one such country. As a case study, we investigated rural Indian villages that declared themselves as cashless to assess the financial reality of villagers. We conducted a survey of households (N=3,159) within villages across seven Indian states. In each state, we studied a village that was officially declared cashless and a nearby comparison village. Our findings suggest that the comparison villages did as well as the cashless villages, as financial inclusion via digital banking was minimal to nonexistent. Alongside significant state variations, we found that financial literacy and online access were the best predictors of performing any digital banking activity. This study concludes with a warning against rushing toward digital banking and the formation of cashless societies, as marginalized populations may be excluded.