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Assessing the Impact of a Minimum Income Scheme in the Basque Country

Author

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  • de la Rica, Sara

    (University of the Basque Country)

  • Gorjón, Lucía

    (University of the Basque Country)

Abstract

In this paper we assess the impact of a Minimum Income Scheme (MIS) which has been operating in the Basque Country, one of Spain's 17 regions, for more than twenty years. In particular, we test whether the policy delays entry into employment for recipients. In addition, we test the efficacy of policies aimed at enabling recipients of the MIS to re-enter employment. Our results indicate that on average the Minimum Income Scheme, in addition to preventing social exclusion by providing financial support, does not delay entry into employment. However, the impact differs from one demographic group to another. Furthermore, Active Labour Market Policies designed for this group, in particular training, have a strong positive impact on finding a new job.

Suggested Citation

  • 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).
    • Handle: RePEc:iza:izadps:dp10867
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    References listed on IDEAS

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    Cited by:

    1. Lucía Gorjón García & Sara de la Rica & Antonio Villar, 2019. "The social cost of unemployment in Spain: who are the losers?," Working Papers 19.08, Universidad Pablo de Olavide, Department of Economics.
    2. 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.
    3. Lucía Gorjón & Sara de la Rica & Antonio Villar, 2018. "The social cost of unemployment: the Spanish labour market from a social welfare approach," Studies on the Spanish Economy eee2018-22, FEDEA.
    4. Lucía Gorjón & Sara Rica & Antonio Villar, 2020. "The Cost of Unemployment from a Social Welfare Approach: The Case of Spain and Its Regions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(3), pages 955-976, August.

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    More about this item

    Keywords

    minimum income schemes; active labour market policies; poverty; inverse probability weighting; propensity score matching;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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