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Navigating volatility in different welfare state contexts

Project description

Interaction between volatility, social policies and household strategies

Income targeting in European welfare policies aims to enhance efficiency, but real-world examples highlight its limitations. Research should focus on how policies interact with household income fluctuations and coping strategies. The ERC-funded VOLARE project aims to clarify the relationship between fluctuating incomes, household strategies, and social policy design across different contexts. The theoretical framework suggests that households use both formal and constrained strategies when dealing with income volatility, focusing on either short-term management or long-term goals. The project will evaluate this relationship using a mixed-methods approach, combining monthly income data from over 240 low- to middle-income families in four European countries. The findings are expected to significantly advance research on income volatility, social policy, and household strategies.

Objective

Income targeting has permeated social policy design in European welfare states, in order to boost their efficiency and effectiveness. Yet real-life examples of integrated income-targeted schemes highlight the shortcomings of an overly technocratic view. Social policy research needs to analyse how policy design interacts with the month-to-month income variability experienced by households, and the strategies they develop to cope with and navigate this volatility.

VOLARE disentangles the relationship between fluctuating incomes, household navigating strategies and social policy design in different institutional contexts. VOLARE’s theoretical framework argues that a) households employ both formal and constrained strategies in the face of volatile incomes, that can be focused on short-term juggling of incomes, or oriented towards longer-term objectives; b) the welfare state context and households’ preferences for stability influence the adopted strategies, but c) with their strategies households also actively navigate the eligibility and entitlement criteria determining the accessibility, timeliness and effectiveness of social policy responses. VOLARE assesses the implications of this interaction for effective social policy design.

The framework is scrutinized empirically within an innovative mixed-methods design that links consecutive quantitative monthly incomes collected among over 240 low to middle-income families in four European countries, with in-depth interviews on the strategies selected households develop to navigate volatile incomes. These findings are confronted with nationally representative month-to-month volatility estimates and welfare state responses. A survey experiment adds further substance as to how households value stability over income, given their access to formal or constrained navigating strategies.

In doing so, VOLARE forces a major breakthrough in the research on income volatility, social policy effectiveness and household strategies.

Fields of science (EuroSciVoc)

Keywords

Programme(s)

Topic(s)

Funding Scheme

HORIZON-ERC - HORIZON ERC Grants

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Call for proposal

(opens in new window) ERC-2025-STG

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Host institution

UNIVERSITEIT ANTWERPEN
Net EU contribution
€ 1 841 705,00
Address
PRINSSTRAAT 13
2000 Antwerpen
Belgium
Region
Vlaams Gewest Prov. Antwerpen Arr. Antwerpen
Activity type
Higher or Secondary Education Establishments
Links
Total cost
€ 1 841 705,00

Beneficiaries (1)