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Experimenting with Minimum Income Guarantee in the Netherlands: Utrecht Citizen’s Basic Income Day, London School of Economics Timo Verlaat | February 20, 2018

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Page 1: Experimenting with Minimum Income Guarantee in the ... · Utrecht: fast facts1 20/02/18 Experimenting with Minimum Guaranteed Income in the Netherlands 4 Population: 340,000 Unemployed:

Experimenting with Minimum Income Guarantee in the Netherlands: Utrecht

Citizen’s Basic Income Day, London School of Economics

Timo Verlaat | February 20, 2018

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1. Introduction

(1) Utrecht: fast facts

(2) Minimum Income Guarantee in the Netherlands

(3) Where it all started

(4) A new movement

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Utrecht: fast facts1

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Population: 340,000

Unemployed: 6.0% (NL: 5.9%)

MIG: 10,000 households (5.7%)

1) 2016 data 2) 2015 data Map: Vecteezy.com

GDP growth2: 2.5% (NL: 2.0%)

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20/02/18

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Minimum Income Guarantee in the Netherlands

National government

Establishing legal frameworks

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Municipalities

Executing the scheme

• Lowest social security layer

• Means-tested benefit

• Sanctioning in case of noncompliance

• 980€ / month for single person household

• On top: child, housing and healthcare allowances

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Where it all started

• January 2015: Introduction of the Participation Act

• Tightening of social security regulations

• Reform discontents many Dutch municipalities

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Is there another way?

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A new movement

8

Simplifying the rules of the system

Improving the system through evidence-based policy

Stimulating more recipients to reintegrate and participate

Paradigm shift from enforcement and distrust

to own responsibility and trust

Experimenting with Minimum Guaranteed Income in the Netherlands 20/02/18

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A new movement

9 Experimenting with Minimum Guaranteed Income in the Netherlands 20/02/18

42 municipalities with plans to experiment

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2. The experiment

(1) Experimental design

(2) Outcomes

(3) Outlook

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Experimental design: fast facts

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• Cooperation between City of Utrecht and Utrecht University

• RCT with recipients of minimum income guarantee in Utrecht

• Duration of 1.5 years

• One control and three treatment groups à 150-200 subjects

• Voluntary participation

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3

+199€

Experimental design: treatments

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980€

Control 1 2

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Outcomes

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Job search behaviour & labour market reintegration

Participation & social activation

Financial situation

Health & well-being

Satisfaction of recipients and caseworkers

Cost of the scheme

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Outlook

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(1) Six Dutch cities started to experiment

(2) Experiments started under strict regulations

(3) Results expected in spring 2020

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Thank you for your attention.

Timo Verlaat Utrecht University School of Economics (U.S.E.) [email protected] @timoverlaat