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Who Benefited Most from the Reddito di Cittadinanza? Evidence on Poverty and In-Work Poverty in Italy

Author

Listed:
  • Fernanda Mazzotta

    (Department of Economics and Statistics - University of Salerno - Italy and CELPE)

  • Lavinia Parisi

    (Department of Economics and Statistics - University of Salerno - Italy and CELPE)

  • Adama Touray

    (University of The Ghambia)

Abstract

Social cash transfers have been expanding across Europe, though Italy has been slower to adopt such measures. In recent years, however, Italy has introduced several transfer schemes to address rising poverty and social exclusion—most notably the Reddito di Cittadinanza (RdC), recently replaced by the Assegno di Inclusione (ADI). This paper contributes to the ongoing debate on the effectiveness of cash transfers by evaluating the effect of RdC on absolute and relative poverty incidence and gap, as well as in-work poverty. Using data from the Bank of Italy’s Survey on Household Income and Wealth (SHIW) for 2020 and 2022, we apply descriptive statistics, a probit and tobit analysis to assess changes excluding and including the RdC. Our findings show that RdC significantly reduces both absolute and relative poverty but has no significant effect on in-work poverty. Further heterogeneity analysis reveals that the impact of RdC varies across different population groups.

Suggested Citation

  • Fernanda Mazzotta & Lavinia Parisi & Adama Touray, 2025. "Who Benefited Most from the Reddito di Cittadinanza? Evidence on Poverty and In-Work Poverty in Italy," CELPE Discussion Papers 176, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    • Handle: RePEc:sal:celpdp:021732
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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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