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Minimum Income in Portugal: Changing the Rules in Times of Crisis

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  • Carlos Farinha Rodrigues

Abstract

The aim of this paper is to estimate the impact on the distribution of household income and poverty of the 2010 reform of the law that establish the non-contributory social benefits entitlement conditions in Portugal, with particular incidence in the Social Integration Income (RSI). Carried out in a period of serious deepening economic and social crisis, the changes in the resources condition appear fundamentally as a way of limiting and reducing the resources earmarked for social policies usage, precisely at the time when increased social insecurity should lead to a significant increase in the importance of such social policies. Using micro-data from the European Union Statistics on Income and Living Conditions (EU-SILC), we simulate the impact of the reform and estimate its effects on the income distribution and on different dimensions of monetary poverty. The change in the size of government expenditure required to finance these programs will also be estimated.

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File URL: http://pascal.iseg.utl.pt/~depeco/wp/wp052012.pdf
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Bibliographic Info

Paper provided by ISEG - School of Economics and Management, Department of Economics, University of Lisbon in its series Working Papers Department of Economics with number 2012/05.

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Date of creation: Jan 2012
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Handle: RePEc:ise:isegwp:wp052012

Contact details of provider:
Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC

Related research

Keywords: Social Policy; Income Distribution; Inequality; Poverty Alleviation; Portugal;

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  1. Beckerman, W, 1979. "The Impact of Income Maintenance Payments on Poverty in Britain, 1975," Economic Journal, Royal Economic Society, vol. 89(354), pages 261-79, June.
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