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GINI DP 2: Are European Social Safety Nets Tight Enough? Coverage and adequacy of minimum income schemes in 14 EU countries

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  • Francesco Figari

    (University of Insubria)

  • Matsaganis, M.
  • Holly Sutherland

    (Dept. of Applied Economics, University of Cambridge)

Abstract

This paper explores and compares the effectiveness of Minimum Income (MI) schemes in protecting persons of working age from poverty in the European Union. Using the European microsimulation model EUROMOD we estimate indicators of coverage and adequacy of MI schemes in 14 EU countries. In terms of coverage, we find that in several countries a significant number of individuals are ineligible for MI even when they fall below a poverty line set at 40 per cent of median income. With respect to adequacy, we show that in certain countries a large fraction of those entitled to MI remain at very low levels of income even when MI benefit is added. Overall, our findings suggest that the clustering of MI schemes in Europe may be more complex than previous literature has hitherto allowed for.

Suggested Citation

  • Francesco Figari & Matsaganis, M. & Holly Sutherland, 2011. "GINI DP 2: Are European Social Safety Nets Tight Enough? Coverage and adequacy of minimum income schemes in 14 EU countries," GINI Discussion Papers 2, AIAS, Amsterdam Institute for Advanced Labour Studies.
    • Handle: RePEc:aia:ginidp:2
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    References listed on IDEAS

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    1. Koen Caminada & Kees Goudswaard & Olaf Van Vliet, 2010. "Patterns of Welfare State Indicators in the EU: Is there Convergence?," Journal of Common Market Studies, Wiley Blackwell, vol. 48(3), pages 529-556, June.
    2. Koen Caminada & Kees Goudswaard & Olaf Van Vliet, 2010. "Patterns of Welfare State Indicators in the EU: Is there Convergence?," Journal of Common Market Studies, Wiley Blackwell, vol. 48(3), pages 529-556, June.
    3. Willem Adema, 2006. "Social Assistance Policy Development and the Provision of a Decent Level of Income in Selected OECD Countries," OECD Social, Employment and Migration Working Papers 38, OECD Publishing.
    4. Barr, Nicholas, 2004. "Economics of the Welfare State," OUP Catalogue, Oxford University Press, edition 4, number 9780199264971.
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    Cited by:

    1. Nelson, Kenneth & Fritzell, Johan, 2014. "Welfare states and population health: The role of minimum income benefits for mortality," Social Science & Medicine, Elsevier, vol. 112(C), pages 63-71.

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