Comparing municipal reintegration policy

In this report, 74 municipal studies are compared. Since reintegration measures, because of cuts, have to be used more selective, it is important to know what efforts have the greatest return. It is important that re-integration parties share this knowledge.

In the study different topics came under scrutiny. One of them is Work First. The municipal studies on this re-integration tool show that the probability of outflow from benefit increases as claimants are in a real working environment as much as possible. The outflow from Work First projects to work would increase from 21 percent in a simulated environment to 50 percent in a real work environment. These people find a job sooner when municipalities pay much attention to job interview training, job seeking guidance and education. Also a strict absenteeism policy is bearing fruit.

The municipal research also shows that for groups with a large distance from the labor market outsourcing is more effective when private reintegration companies have specific know-how. It appears that for outsourcing reintegration output judgment (no cure no pay) works best when groups of customers do not have multiple problems. For groups with multiple problems input judgment is more appropriate. For customers with a short distance from the labor market it is better if municipalities carry out the reintegration activities themselves.

Another outcome is that people on benefits who are not sufficiently productive to earn the minimum wage find a job easier if lower productivity is compensated. If the cost of this compensation is lower than the cost of the benefit, government, employer and new employee all take advantage.