The 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.
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Paper provided by Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon. in its series Working Papers with number
2001/08.
Length: Date of creation: 2001 Date of revision: Handle: RePEc:ise:isegwp:wp82001
Contact details of provider: Postal: Department of Economics, School of Economics and Management (ISEG), Technical University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL Web page: http://www.iseg.utl.pt/departamentos/economia/
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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 and Poverty - - - Measurement and Analysis of Poverty I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
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O'donoghue C & Albuquerque J & Baldini M & Bargain O & Bosi P & Levy H & Mantovani D & Matsaganis M & Mercader-prats M & Farinha rodrigues C & Toso S & Terraz I & Tsakloglou P, 2002.
"The Impact Of Means Tested Assistance In Southern Europe,"
EUROMOD Working Papers
EM6/01, EUROMOD at the Institute for Social and Economic Research.
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