Bridging Welfare and Work: Assessing Intensive Job Placement for Minimum Income Recipients

Yarine Fawaz (), Laura Hospido () and Júlia Martí Llobet
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Yarine Fawaz: CEMFI, Madrid
Laura Hospido: Bank of Spain
Júlia Martí Llobet: CEMFI

No 18169, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We evaluate the effects of a randomized activation program targeting recipients of the Spain’s national Minimum Income Scheme. The intervention combined personalized coaching, job-search assistance, soft-skills training, and, in one treatment arm, also digital-skills workshops. While short-run employment effects were limited, the program significantly reduced the prevalence of informal work and improved participants’ financial resilience. Gains were particularly pronounced among those who received the digital-skills component, who reported large improvements in digital task performance. Half a year after receiving the treatment, administrative social security records show emerging positive effects on days worked, contract stability, and full-time employment, especially in the digital-skills group. We also find evidence of a psychological awareness effect: low-engagement participants reported lower self-assessed transversal skills, possibly reflecting a shift in self-perception. Our findings highlight the potential of multidimensional, personalized activation strategies to foster formalization and digital inclusion among low-income populations.

Keywords: randomized controlled trial; active labor market policies; social inclusion (search for similar items in EconPapers)
JEL-codes: C93 E24 I32 I38 (search for similar items in EconPapers)
Date: 2025-10
New Economics Papers: this item is included in nep-eur, nep-exp, nep-lma and nep-mac
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