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Efficacy of Anti-poverty and Welfare Programs in Portugal: the Joint Impact of the CSI and RSI

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  • Carlos Farinha Rodrigues

Abstract

The aim of this paper is to estimate the joint impact on the distribution of household income and poverty of the implementation of two major anti‐poverty measures in Portugal: the “Solidarity Supplement for the Elderly” (CSI) and the “Social Integration Income” (RSI). These two means‐tested measures were designed as the main components of the anti‐poverty social policy in Portugal, but they are directed at different groups of the population and have different objectives in terms of poverty reduction. Implemented since 1997, the aim of the RSI is to reduce extreme poverty through the reduction of poverty intensity of the most vulnerable sectors of the population. The CSI, gradually introduced since 2006, has the explicit objective of reducing the incidence of poverty on older people, its threshold defined at the level of the poverty line. Using a prototype of the Portuguese microsimulation model MicroSimPT , based on household micro‐data from the European Union Statistics on Income and Living Conditions (EU‐SILC), we simulate the impact of each measure and their joint effect on the income distribution and on different dimensions of monetary poverty. The size of government expenditure required to finance these programs will also be estimated. Key words: Income Distribution, Inequality, Poverty Alleviation, Social Policy, Portugal

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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 2009/42.

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Date of creation: Oct 2009
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Handle: RePEc:ise:isegwp:wp422009

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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

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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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Cited by:
  1. Carlos Farinha Rodrigues & Isabel Andrade, 2013. "Robin Hood versus Piggy Bank: Income redistribution in Portugal 2006-10," Working Papers Department of Economics 2013/28, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  2. Maria Cidália Queiroz & Marrielle Christine Gros, 2012. "Social Insertion Income: the contribution of the association Qualificar para Incluyir towards enhancing this policy," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, issue 35, pages 59-73, June.

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