Study presents four models for inclusive social security
A research group at the University of Helsinki explored models for inclusive social security. The research group recommends that Finland should adopt participation income as a model for further preparation. This would include measures to promote employment or participation to be agreed upon with a social worker, in addition to jobseeking.
The research group’s report explores how the existing social security system, particularly unemployment security, could be used more extensively for competence development, reinforcement of working life participation, prevention of exclusion from the labour market and lowering the threshold for employment among unemployed persons.
The research project was conducted as part of the implementation of the 2016 Government plan for analysis, assessment and research. The purpose of the study was to generate information for implementation of the Government Programme.
Research group recommends the participation income model
The study surveyed various models for inclusive social security in Germany, Denmark and the Netherlands. The research group also developed a fourth model, based on experiences in the Netherlands in particular, known as participation income, which it is recommending to be taken up for eventual further preparation in Finland.
Participation income would consist of income transfers and services, and its principal purpose would be to prevent social exclusion. It would replace the labour market subsidy for long-term recipients and include participation in measures to promote employment or participation, to be agreed with a social worker or social instructor.
Participation income would allow unemployed persons in its target group to agree with the social worker exactly how they are to participate in active measures, within given limits. The model would bring freedom of choice but also impose obligations. However, the study indicates that the monitoring system for service participation should be light and principally based on trust. It could be run on a user-friendly Internet-based IT system.
“The participation income model would mean a rather radical change to the rights and responsibilities of unemployed persons in the target group. It would also be a paradigm shift in Finnish activation policy and social work. It is important to undergo a thorough public debate on this subject and to include people from the target group in decision-making,” stresses the leader of the research team, Heikki Hiilamo, leader of the research team and Professor of Social Policy at the University of Helsinki.
The research team proposes that the participation income could be experimentally launched in limited areas or at social service offices.
Establishing inclusive social security forms part of one of the key projects in the Government Programme of the Government of Prime Minister Juha Sipilä, ‘Incentive traps preventing acceptance of work will be removed and structural unemployment reduced’.
Further information on analysis, assessment and research activities of the Government tietokayttoon.fi
Further information: Heikki Hiilamo, Professor of Social Policy, University of Helsinki, tel. +358 40 358 7203; Pasi Moisio, Research Professor, National Institute for Health and Welfare, tel. +358 29 524 7228.