Assessing the Impact of a Minimum Income Scheme in the Basque Country

33 Pages Posted: 10 Jul 2017

See all articles by Sara de la Rica

Sara de la Rica

Universidad del Pais Vasco; IZA Institute of Labor Economics

Lucía Gorjón

Foundation for Applied Economic Research (FEDEA); University of the Basque Country

Abstract

In this paper we assess the impact of a Minimum Income Scheme (MIS) which has been operating in the Basque Country, one of Spain's 17 regions, for more than twenty years. In particular, we test whether the policy delays entry into employment for recipients. In addition, we test the efficacy of policies aimed at enabling recipients of the MIS to re-enter employment. Our results indicate that on average the Minimum Income Scheme, in addition to preventing social exclusion by providing financial support, does not delay entry into employment. However, 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.

Keywords: minimum income schemes, active labour market policies, poverty, inverse probability weighting, propensity score matching

JEL Classification: C14, C21, C52

Suggested Citation

de la Rica, Sara and Gorjón, Lucía and Gorjón, Lucía, Assessing the Impact of a Minimum Income Scheme in the Basque Country. IZA Discussion Paper No. 10867, Available at SSRN: https://ssrn.com/abstract=2998976 or http://dx.doi.org/10.2139/ssrn.2998976

Sara De la Rica (Contact Author)

Universidad del Pais Vasco ( email )

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Lucía Gorjón

Foundation for Applied Economic Research (FEDEA) ( email )

Jorge Juan 46
Madrid, 28001
Spain

University of the Basque Country ( email )

Barrio Sarriena s/n
Leioa, 48940
Spain

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