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An ex ante evaluation of the Revenu de Solidarité Active by micro-macro simulation techniques

Author

Listed:
  • Luciano Canova

    (Enrico Mattei School)

  • Luca Piccoli

    (Universitat de les Illes Balears)

  • Amedeo Spadaro

    (Universitat de les Illes Balears)

Abstract

This paper aims to investigate the effects of the introduction of an active welfare state measure, the Revenu de Solidarité Active (RSA), in France. The RSA replaced the old system of social minima, comprised by RMI and API. By using a micro-macro simulation model we characterize the effects on households’ disposable income, labour supply, wages, GDP, deficit, and other micro and macroeconomic aspects. We find that, although increasing public expenditure, RSA largely repays its cost by reducing involuntary unemployment, increasing labour supply and private consumption, and thus improving GDP and the deficit/GDP ratio. Poverty and inequality are also reduced significantly.

Suggested Citation

  • Luciano Canova & Luca Piccoli & Amedeo Spadaro, 2014. "An ex ante evaluation of the Revenu de Solidarité Active by micro-macro simulation techniques," DEA Working Papers 67, Universitat de les Illes Balears, Departament d'Economía Aplicada.
  • Handle: RePEc:ubi:deawps:67
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    References listed on IDEAS

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    Cited by:

    1. Małgorzata Latuszynska & Shivan Fate, 2019. "A Hybrid Simulation Approach to Modelling the Impact of Public Interventions on Poverty," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 347-363.
    2. Magnani, Riccardo & Piccoli, Luca, 2020. "Universal basic income with flat tax reform in France," Journal of Policy Modeling, Elsevier, vol. 42(2), pages 235-249.

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    More about this item

    Keywords

    revenue de Solidarité active; RSA; active welfare state; microsimulation; CGE; micro-macro; labour supply; policy evaluation;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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