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The Minimum Income Scheme as a poverty reduction mechanism:the case of the Basque Country

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  • Lucía Gorjón García
  • Antonio Villar
Abstract
This paper analyses the impact of a Minimum Income Scheme (MIS), which operates in the Basque Country, one of the 17 Spanish Autonomous Regions, by assessing its efficacy in fighting poverty. We evaluate the effect or the MIS with respect to two different poverty measures. The first one is that defined by the administrative criteria of eligibility. The second one corresponds to Sen’s poverty measure that permits a simple decomposition of poverty into three different components, incidence, intensity and inequality. The results show that the MIS has reduced substantially all dimensions of poverty, even though there is scope for improvement both in coverage and efficiency.

Suggested Citation

  • Lucía Gorjón García & Antonio Villar, 2019. "The Minimum Income Scheme as a poverty reduction mechanism:the case of the Basque Country," Studies on the Spanish Economy eee2019-10, FEDEA.
    • Handle: RePEc:fda:fdaeee:eee2019-10
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    References listed on IDEAS

    as
    1. Sara de La Rica & Lucía Gorjón, 2017. "Assessing the Impact of a Minimum Income Scheme in the Basque Country," Studies on the Spanish Economy eee2017-16, FEDEA.
    2. Antonio Villar, 2017. "Inequality and Welfare," Lecture Notes in Economics and Mathematical Systems, in: Lectures on Inequality, Poverty and Welfare, chapter 0, pages 93-112, Springer.
    3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    4. de la Rica, Sara & Gorjón, Lucía, 2017. "Assessing the Impact of a Minimum Income Scheme in the Basque Country," IZA Discussion Papers 10867, Institute of Labor Economics (IZA).
    5. Miguel Gouveia & Carlos Farinha Rodrigues, "undated". "The impact of a "Minimum Guaranteed Income Program" in Portugal," Working Papers Department of Economics 1999/03, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    6. Satya R. Chakravarty, 2009. "Inequality, Polarization and Poverty," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-79253-8, January.
    7. Tsakloglou, Panos & O'Donoghue, Cathal & Matsaganis, Manos & Levy, Horacio & Coromaldi, Manuela & Farinha Rodrigues, Carlos & Toso, Stefano & Mercader-Prats, M., 2004. "Child poverty and family transfers in Southern Europe," EUROMOD Working Papers EM2/04, EUROMOD at the Institute for Social and Economic Research.
    8. Antonio Villar, 2017. "Lectures on Inequality, Poverty and Welfare," Lecture Notes in Economics and Mathematical Systems, Springer, number 978-3-319-45562-4, July.
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    10. Carlos Farinha Rodrigues, 2001. "Anti-poverty effectiveness and efficiency of the Guaranteed Minimum Income Programme in Portugal," Working Papers Department of Economics 2001/08, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    11. Beckerman, W, 1979. "The Impact of Income Maintenance Payments on Poverty in Britain, 1975," Economic Journal, Royal Economic Society, vol. 89(354), pages 261-279, June.
    12. Carlos Farinha Rodrigues, 2004. "The Redistributive Impact of the Guaranteed Minimum Income Programme in Portugal," Working Papers Department of Economics 2004/09, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    13. Ayala, Luis & Paniagua, Milagros, 2017. "The impact of in-work benefits on female labor supply and income distribution in Spain," EUROMOD Working Papers EM17/17, EUROMOD at the Institute for Social and Economic Research.
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    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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