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Minimum Income Support Systems as Elements of Crisis Resilience in Europe

Author

Listed:
  • Eichhorst Werner
  • Holger Bonin
  • Annabelle Krause-Pilatus
  • Paul Marx
  • Mathias Dolls
  • Max Lay

Abstract

The aim of this study is to analyse the role of social policies in different European welfare states regarding minimum income protection and active inclusion. The core focus lies on crisis resilience, i.e. the capacity of social policy arrangements to contain poverty and inequality and avoid exclusion before, during and after periods of economic shocks. To achieve this goal, the study expands its analytical focus to include other tiers of social protection, in particular upstream systems such as unemployment insurance, job retention and employment protection, as they play an additional and potentially prominent role in providing income and job protection in situations of crisis. A mixed-method approach is used that combines quantitative and qualitative research, such as descrip-tive and multivariate quantitative analyses, microsimulation methods and in-depth case studies. The study finds consistent differences in terms of crisis resilience across countries and welfare state types. In general, Nordic and Continental European welfare states with strong upstream systems and minimum income support (MIS) show better outcomes in core socio-economic outcomes such as poverty and exclusion risks. However, labour market integration shows some dualisms in Continental Europe. The study shows that MIS holds particular importance if there are gaps in upstream systems or cases of severe and lasting crises.

Suggested Citation

  • Eichhorst Werner & Holger Bonin & Annabelle Krause-Pilatus & Paul Marx & Mathias Dolls & Max Lay, 2023. "Minimum Income Support Systems as Elements of Crisis Resilience in Europe," EconPol Policy Reports 40, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:econpr:_40
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    Cited by:

    1. Eichhorst, Werner & Scalise, Gemma, 2024. "Revisiting Dualism? The Governance of the Low Pay-Low Skill Labour Market in Four European Countries," IZA Discussion Papers 17378, Institute of Labor Economics (IZA).
    2. Mathias Dolls & Max Lay, 2023. "The Role of Income Support Systems as Income Stabilizers in Times of Crisis," EconPol Policy Brief 52, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    3. Eichhorst, Werner & Krause-Pilatus, Annabelle & Dolls, Mathias & Lay, Max, 2024. "Crisis Resilience of European Welfare States: The Role of Multiple Layers of Protection," IZA Discussion Papers 17463, Institute of Labor Economics (IZA).
    4. Eichhorst, Werner & Bonin, Holger & Krause-Pilatus, Annabelle & Marx, Paul & Dolls, Mathias & Lay, Max, 2023. "Minimum Income Support Systems as Elements of Crisis Resilience in Europe," IZA Research Reports 137, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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