Scarcity and the Mindsets of Social Welfare Recipients: Evidence from a Field Experiment

Journal of Public Administration Research and Theory 2022

33 Pages Posted: 6 Jan 2023

See all articles by Jonas Krogh Madsen

Jonas Krogh Madsen

Roskilde University

Martin Bækgaard

Aarhus University

Jon Kvist

University of Southern Denmark

Date Written: 2022

Abstract

Financial scarcity is a fundamental condition for recipients of social welfare. But how does scarcity affect their ability to improve their prospects? In a field experiment using Danish unemployed social assistance recipients (N = 2,637), we test the impact of scarcity by randomly assigning recipients to be surveyed either shortly before payment of their social assistance benefits, shortly after, or mid-month. We find no impact of the scarcity manipulation. However, a series of cross-sectional regressions show that perceived scarcity, i.e. ‘the feeling of having too little’, is associated with an increased focus on solving problems, but negatively associated with psychological well-being, sense of mastery, and job search self-efficacy. Our findings run counter to the idea that changes in scarce financial conditions influence the mindsets of social welfare recipients and simultaneously points to the importance of subjective feelings of scarcity.

Keywords: Scarcity, financial strain, social welfare, administrative burden, coping strategies, field experiment

JEL Classification: C93, H83, I32, I38, J64

Suggested Citation

Madsen, Jonas Krogh and Bækgaard, Martin and Kvist, Jon, Scarcity and the Mindsets of Social Welfare Recipients: Evidence from a Field Experiment ( 2022). Journal of Public Administration Research and Theory 2022, Available at SSRN: https://ssrn.com/abstract=4318561 or http://dx.doi.org/10.2139/ssrn.4318561

Jonas Krogh Madsen

Roskilde University ( email )

Martin Bækgaard (Contact Author)

Aarhus University ( email )

Nordre Ringgade 1
DK-8000 Aarhus C
Denmark

Jon Kvist

University of Southern Denmark ( email )

Campusvej 55
DK-5230 Odense, 5000
Denmark

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
70
Abstract Views
397
Rank
639,786
PlumX Metrics