Evaluating social assistance reforms under programme heterogeneity and alternative measures of success

Abstract

This article presents an assessment of welfare reforms under a framework of programme heterogeneity and alternative measures of success. The study focused on a specific programme – Madrid's Ingreso Madrileño de Integración (Madrid Regional Government's Welfare Programme) – which comprises heterogeneous sub‐programmes. We tested whether work‐related sub‐programmes performed better than general activities aimed at improving life skills by analysing the effects on different types of outcomes. We also tried to identify which work‐related sub‐programme worked best. Our results show that intensive employment activities yield remarkably better results than general work‐related schemes or life‐skills activities. However, increasing work participation does not automatically lift participants out of material hardship. Key Practitioner Message: ● Strategies to reduce the dependence of low‐income households on government support by improving employment opportunities; ● Evaluation of alternative work‐related sub‐programmes in welfare policies; ● New evidence on approaches that consider heterogeneous sub‐programmes and different types of outcomes might inform and partially shape the future public policy agenda in the welfare reform debate.

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