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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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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
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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