Conditionality vs. Autonomy: What Works Best in Social Assistance?

Abstract

We study the impacts of reducing conditionality for social assistance recipients through a field experiment in the Netherlands. Treated subjects received an exemption from job search requirements, monitoring, and sanctions or intensive counseling personalized to their needs and wishes. We find that exemption increases the probabilities of employment and self-sufficiency and improves reemployment quality. The effects of counseling are less pronounced and statistically insignificant. Using surveys, we find positive effects on experienced autonomy but no evidence of effects on job search behavior, social participation, health, and well-being. Our findings shed new light on the trade-off between autonomy and conditionality in social welfare.