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Assessing the impact of a minimum income scheme: the Basque Country case

Author

Listed:
  • Sara Rica

    (University of the Basque Country
    ISEAK)

  • Lucía Gorjón

    (ISEAK
    FEDEA)

Abstract

In this paper, we evaluate the impact of a minimum income scheme (MIS) in the Basque Country, one of Spain’s 17 autonomous regions. In particular, we assess whether the policy delays entry into employment for recipients, as well as the extent to which activating policies aimed at enabling recipients of the MIS to enter employment work. To do so, we use administrative data of the universe of individuals registered in the public employment service in the region. On average, the minimum income scheme does not delay entry into employment, although 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

  • Sara Rica & Lucía Gorjón, 2019. "Assessing the impact of a minimum income scheme: the Basque Country case," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 10(3), pages 251-280, November.
    • Handle: RePEc:spr:series:v:10:y:2019:i:3:d:10.1007_s13209-019-00203-2
    DOI: 10.1007/s13209-019-00203-2
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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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