Abstract

Social assistance is a means-tested benefit that is supposed to be a short-term, temporary economic support. Understanding why some individuals are in repeated or continuous need of social assistance is thus of obvious policy relevance, but the dynamics of social assistance receipt remain poorly understood. In 2005, a survey among long-term recipients of social assistance in Norway collected data on (a) childhood disadvantages, (b) health status, (c) health behaviors, (d) psychological resources, and (e) social ties, in addition to basic sociodemographic information. This rich survey data has been linked with tax register data from 2005–2013, enabling us to explore the detailed characteristics of long-term social assistance recipients who are unable to reach financial self-sufficiency. Results from linear probability models show that surprisingly few of the 28 explanatory variables are statistically associated with social assistance dynamics, with two important exceptions: People with drug problems and immigrants both have a much higher probability of social assistance receipt. Yet overall, it is challenging to ‘predict’ social assistance dynamics, indicating that randomness most likely plays a non-negligible role. The 28 explanatory variables do a far better job in predicting both labor market success (employment), labor market preparation (work assessment allowance), and labor market withdrawal (disability benefit utilization). Thus, there seems to be something distinctive about the processes leading to continued social assistance recipiency, where randomness could be a more influential force.

Highlights

  • Social assistance is the final safety net in the Norwegian welfare state, which is granted only if all other potential income sources are exhausted

  • We cannot compare all of these numbers with the population as a whole in the current paper, but previous research on the current social assistance cohort indicates that the sample is characterized by an overrepresentation of various difficulties and challenges [42, 43]

  • The aim of the current paper was to disentangle the dynamics of social assistance in Norway

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Summary

Introduction

Social assistance is the final safety net in the Norwegian welfare state, which is granted only if all other potential income sources are exhausted. It is an explicit aim that this means-tested benefit is a temporary economic support that promotes self-sufficiency [1]. Social assistance is designed to be, and normally is, a transitory and short-term (e.g., 2–3 months) income source available for people who are in (temporary) need of help.

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