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Do remittances and social assistance transfers have different impacts on household’s expenditure patterns? While two separate strands of literature have looked at how social assistance or remittances have been spent, few studies have compared them directly. Using data from a household survey conducted in Moldova in 2011, this paper assesses the impact both types of transfers have on household expenditure patterns. Contrary to the common assumption that money is fungible, we find that social assistance and remittances have different impacts on expenditure patterns (having controlled for potential endogeneity). In other words, where the income comes from can determine how it is spent. As such, different sources of income may have different poverty impacts. In our sample, the two types of transfers are received by different, but slightly overlapping population groups. The fact that the two transfers are spent in different ways means that, to some extent, social assistance and remittances are complements rather than substitutes.
The Participation Act, introduced in the Netherlands in 2015, puts into practice the idea that every individual has to make a contribution in a participatory society. The Act includes aspects of income support, compulsory activities in return for benefits, and labour market reintegration. Drawing on 45 interviews, we provide insights into interactions between the individual financial and social situation, an individual’s position in society, and reintegration activities. The narratives show the fundamental need for individual freedom and societal meaning, recognition, and appreciation, as well as the complex circumstances in which social assistance recipients make decisions. Conflicts between those needs and the Act lead to the question of how personal and societal objectives can be reconciled.
