Incentivizing last-resort social assistance clients : Evidence from a Finnish policy experiment
Palviainen, Heikki (2021)
Johtamisen ja talouden tiedekunta - Faculty of Management and Business
This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
In 2002, the Finnish government introduced an earnings disregard experiment aimed at improving the incentives of low-income individuals who receive last-resort social assistance. The aim of the experiment was to reduce unemployment by providing social assistance clients better incentives to receive at least temporary or part-time work. This paper evaluates the employment effects of the experiment as an event study using coarsened exact matching (CEM) and difference-in-differences. On average, the results show no employment effects, but there is some evidence on positive employment effects on women.