Reciprocal relations between financial hardship, sense of societal belonging and mental health for social assistance recipients

This study assesses the extent to which reciprocal relations exist between financial hardship, sense of societal belonging and mental health for social assistance recipients. This provides crucial information on how a desired change in these outcomes may be realized, and which factors to target to improve recipients' disadvantaged situation most. In order to answer our research question, we drew on three-wave panel data (N = 348) from a social experiment in the municipality of Nijmegen, the Netherlands, which ran from December 2017 to January 2020. The data were analyzed using cross-lagged panel models. Our findings show that financial hardship and sense of societal belonging did not predict change in recipients' mental health. A better mental health at baseline, in contrast, predicted an increase in sense of societal belonging one and two years later. In addition, both a better mental health and a stronger sense of societal belonging at baseline predicted a decrease in financial hardship one year later, but this relation was not found between other waves. These findings emphasize that improving recipients’ mental health may be a promising policy strategy to improve their situation.