Anti-poverty effectiveness and efficiency of the Guaranteed Minimum Income Programme in Portugal
AbstractThe objective of this paper is to estimate the impact of the Portuguese Guaranteed Minimum Income (GMI) Programme on income distribution and to evaluate its effectiveness and efficiency in fighting situations of poverty and social exclusion. We estimate its impact on the distribution of household incomes and poverty as well as the amount of government expenditure necessary to finance the programme. The simulation shows that 4.8% of domestic households and 5.7% of the population are eligible to receive the GMI. The programme has a small but positive impact on reducing inequality. Similarly, analysis of the effectiveness of the GMI in terms of poverty reduction shows that it has a small but positive impact on the poverty rate. However, the most important consequences of the GMI are sharp gains in the measures of poverty intensity and severity. The efficiency indicators associated with the programme show that 85% of the transfers are awarded to poor people and that 82% of the transfers effectively contributes towards reducing the poverty gap.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by ISEG - School of Economics and Management, Department of Economics, University of Lisbon in its series Working Papers Department of Economics with number 2001/08.
Date of creation: 2001
Date of revision:
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
Income Distribution; Inequality; Poverty Alleviation; Social Policy; Portugal.;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-07-30 (All new papers)
- NEP-DEV-2001-07-30 (Development)
- NEP-EEC-2001-07-30 (European Economics)
- NEP-LTV-2001-07-30 (Unemployment, Inequality & Poverty)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Sadka, Efraim, 1976. "On Income Distribution, Incentive Effects and Optimal Income Taxation," Review of Economic Studies, Wiley Blackwell, vol. 43(2), pages 261-67, June.
- Carlos Farinha Rodrigues, 1999. "Income distribution and poverty in Portugal (1994/95)," Working Papers Department of Economics 1999/04, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Miguel Gouveia & Carlos Farinha Rodrigues, 1999. "The impact of a "Minimum Guaranteed Income Program" in Portugal," Working Papers Department of Economics 1999/03, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Sen, Amartya, 1979. " Issues in the Measurement of Poverty," Scandinavian Journal of Economics, Wiley Blackwell, vol. 81(2), pages 285-307.
- O'Donoghue, Cathal & Albuquerque, J. & Baldini, Massimo & Bargain, Olivier & Bosi, P. & Levy, Horacio & Mantovani, D. & Matsaganis, Manos & Mercader-Prats, M. & Farinha, C. & Rodrigues, Farinha & Toso, 2002. "The impact of means tested assistance in Southern Europe," EUROMOD Working Papers EM6/01, EUROMOD at the Institute for Social and Economic Research.
- Margarida Chagas Lopes & Pedro Goulart, 2003. "Portuguese data on child work: what does it encompass?," Working Papers Department of Economics 2003/04, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Pedro Goulart, 2003. "An Overview on child Labour Determinants - The Portuguese case," Working Papers Department of Economics 2003/03, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vitor Escaria).
If references are entirely missing, you can add them using this form.