Are benefit reductions an effective activation strategy? The case of the lowest benefit recipients in Denmark

Research output: Contribution to journalJournal articlepeer-review

Standard

Are benefit reductions an effective activation strategy? The case of the lowest benefit recipients in Denmark. / Hussain, M. Azhar; Ejrnæs, Morten; Larsen, Jørgen Elm.

In: Journal of Social Policy, Vol. 50, No. 3, 2021, p. 569–587.

Research output: Contribution to journalJournal articlepeer-review

Harvard

Hussain, MA, Ejrnæs, M & Larsen, JE 2021, 'Are benefit reductions an effective activation strategy? The case of the lowest benefit recipients in Denmark', Journal of Social Policy, vol. 50, no. 3, pp. 569–587. https://doi.org/10.1017/S0047279420000318

APA

Hussain, M. A., Ejrnæs, M., & Larsen, J. E. (2021). Are benefit reductions an effective activation strategy? The case of the lowest benefit recipients in Denmark. Journal of Social Policy, 50(3), 569–587. https://doi.org/10.1017/S0047279420000318

Vancouver

Hussain MA, Ejrnæs M, Larsen JE. Are benefit reductions an effective activation strategy? The case of the lowest benefit recipients in Denmark. Journal of Social Policy. 2021;50(3):569–587. https://doi.org/10.1017/S0047279420000318

Author

Hussain, M. Azhar ; Ejrnæs, Morten ; Larsen, Jørgen Elm. / Are benefit reductions an effective activation strategy? The case of the lowest benefit recipients in Denmark. In: Journal of Social Policy. 2021 ; Vol. 50, No. 3. pp. 569–587.

Bibtex

@article{3702da0d9ef3404294b391d71143448a,
title = "Are benefit reductions an effective activation strategy?: The case of the lowest benefit recipients in Denmark",
abstract = "Decades of commitment to the basic principles of the Danish welfare state have been discarded with a new social policy reducing the benefits for people already at the bottom of the income ladder. The political intention is to increase job search via economic incentives that increase the gap between benefit income and market income. Using a panel dataset with benefit recipients, we show that the intended job search effect did not materialise to any significant extent; rather, the affected people became poorer because the vast majority of individuals could not respond to the economic incentives in the intended manner. Joblessness was not due to lack of incentives. This study confirms the importance of employability and self-efficacy, but it shows that health is an underlying variable that explains both of these factors and the recipients{\textquoteright} difficulties in getting a job. The results have two major social policy implications. Access to early retirement schemes should be easier for recipients who have serious health problems and therefore cannot respond to economic incentives, and there should be an increased focus on how to help the recipients without major health problems to develop self-efficacy.",
keywords = "Faculty of Social Sciences, economic incentives, social assistance, health, employment, self-efficacy, regression, economic incentives, social assistance, health",
author = "Hussain, {M. Azhar} and Morten Ejrn{\ae}s and Larsen, {J{\o}rgen Elm}",
year = "2021",
doi = "10.1017/S0047279420000318",
language = "English",
volume = "50",
pages = "569–587",
journal = "Journal of Social Policy",
issn = "0047-2794",
publisher = "Cambridge University Press",
number = "3",

}

RIS

TY - JOUR

T1 - Are benefit reductions an effective activation strategy?

T2 - The case of the lowest benefit recipients in Denmark

AU - Hussain, M. Azhar

AU - Ejrnæs, Morten

AU - Larsen, Jørgen Elm

PY - 2021

Y1 - 2021

N2 - Decades of commitment to the basic principles of the Danish welfare state have been discarded with a new social policy reducing the benefits for people already at the bottom of the income ladder. The political intention is to increase job search via economic incentives that increase the gap between benefit income and market income. Using a panel dataset with benefit recipients, we show that the intended job search effect did not materialise to any significant extent; rather, the affected people became poorer because the vast majority of individuals could not respond to the economic incentives in the intended manner. Joblessness was not due to lack of incentives. This study confirms the importance of employability and self-efficacy, but it shows that health is an underlying variable that explains both of these factors and the recipients’ difficulties in getting a job. The results have two major social policy implications. Access to early retirement schemes should be easier for recipients who have serious health problems and therefore cannot respond to economic incentives, and there should be an increased focus on how to help the recipients without major health problems to develop self-efficacy.

AB - Decades of commitment to the basic principles of the Danish welfare state have been discarded with a new social policy reducing the benefits for people already at the bottom of the income ladder. The political intention is to increase job search via economic incentives that increase the gap between benefit income and market income. Using a panel dataset with benefit recipients, we show that the intended job search effect did not materialise to any significant extent; rather, the affected people became poorer because the vast majority of individuals could not respond to the economic incentives in the intended manner. Joblessness was not due to lack of incentives. This study confirms the importance of employability and self-efficacy, but it shows that health is an underlying variable that explains both of these factors and the recipients’ difficulties in getting a job. The results have two major social policy implications. Access to early retirement schemes should be easier for recipients who have serious health problems and therefore cannot respond to economic incentives, and there should be an increased focus on how to help the recipients without major health problems to develop self-efficacy.

KW - Faculty of Social Sciences

KW - economic incentives

KW - social assistance

KW - health

KW - employment

KW - self-efficacy

KW - regression

KW - economic incentives

KW - social assistance

KW - health

U2 - 10.1017/S0047279420000318

DO - 10.1017/S0047279420000318

M3 - Journal article

VL - 50

SP - 569

EP - 587

JO - Journal of Social Policy

JF - Journal of Social Policy

SN - 0047-2794

IS - 3

ER -

ID: 255355878