Between Compliance and Stigma: Psychosocial Dynamics and Institutional Trust in Minimum Income Welfare
Authors: Maria Theodoratou1,2, Markella Valsami3
Affiliations:
- Social Sciences, Hellenic Open University, Greece
- Social Sciences, Neapolis University Pafos, Paphos, Greece
- Job Center Volos, Volos, Greece
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Background: Minimum income schemes often create an "implementation paradox" where rigid administrative structures conflict with relational casework, creating significant psychological burdens for both frontline workers and beneficiaries.
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Aim: This qualitative study investigates the social psychological dimensions of the Minimum Guaranteed Income (MGI) in Volos, Greece, focusing on institutional trust, emotional well-being, stigmatization, and psychosocial coping.
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Methods: Adopting an interpretive qualitative case study design, sixteen semi-structured interviews (n=16) were conducted in municipal welfare structures with frontline workers (n=8) and intersectionally vulnerable beneficiaries (n=8, including single mothers, Roma, migrants, and long-term unemployed individuals). Data were analyzed using Braun and Clarke’s six-phase thematic analysis, supported by reflexive researcher logging.
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Results: The qualitative analysis revealed three core empirical themes:
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Material Floor vs. Psychological Autonomy: MGI provided an "indispensable" material survival floor for basic needs but failed to foster future-oriented planning, leaving recipients trapped in psychological stasis ("helps me eat today, but I am still in the same situation").
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Bureaucratic Saturation and Trust Erosion: Digital compliance demands transformed social workers into "compliance officers," inducing occupational stress and blocking empathetic care. Beneficiaries interpreted this procedural rigidity as social stigmatization, severely eroding institutional trust.
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The "Work-First" Fallacy: Mandatory "Individual Action Plans" functioned as empty "procedural shells". Policies ignored the depleted "psychological bandwidth" and chronic stress of living in extreme exclusion, rendering activation attempts demoralizing.
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Discussion: Hyper-procedural welfare delivery degrades the relational foundations necessary for social integration. Sustainable policy must shift from administrative compliance to trust-building relational casework, prioritizing psychosocial stabilization as a prerequisite for activation.

