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Evaluating welfare reform under program heterogeneity and alternative measures of success

Author

Listed:
  • Luis Ayala

    () (Universidad Rey Juan Carlos)

  • Magdalena Rodríguez

    () (Instituto de Estudios Fiscales)

Abstract

This paper aims at presenting an assessment of welfare reforms under a framework of program heterogeneity and alternative measures of success. We focus on a specific welfare program –Madrid’s Ingreso Madrileño de Integración (IMI)– which comprises heterogeneous subprograms. We test whether work-related subprograms perform better than general activities aimed at improving life skills. We also try to identify which work-related subprogram works best. The availability of a large database of administrative records (over 50,000 spells) matched with a special survey conducted for former welfare recipients makes possible to develop different types of evaluation strategies on the basis of multiple participation states. 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.

Suggested Citation

  • Luis Ayala & Magdalena Rodríguez, 2010. "Evaluating welfare reform under program heterogeneity and alternative measures of success," Working Papers 186, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2010-186
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2010-186.pdf
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    References listed on IDEAS

    as
    1. Stefanie Behncke & Markus Frölich & Michael Lechner, 2009. "Targeting Labour Market Programmes - Results from a Randomized Experiment," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 145(III), pages 221-268, September.
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    More about this item

    Keywords

    welfare; poverty; program evaluation; multiple treatments.;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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