The Impact of REI on Italian Households' Income: A Micro and Macro Evaluation

Massimo Baldini, Elizabeth Casabianca (), Elena Giarda () and Lorenzo Lusignoli

Politica economica, 2018, issue 2, 103-134

Abstract: In 2017, Italy's government introduced a minimum income scheme, the Reddito di Inclusione (Income Inclusion Programme, REI). REI is a selective, means-tested and conditional scheme that aims at supporting incomes of those most in need. Its structure was recently modified to reach a larger percentage of the poor. In this paper, we simulate the impact of REI on household incomes and evaluate its effects with respect to poverty alleviation and inequality reduction. The analysis is based on the 2015 wave of IT-SILC, the Italian module of European Union Statistics on Income and Living Conditions. Our results show that, under full take-up, REI will reach 45.8% of households in absolute poverty and 22.5% of those in relative poverty. It has a mild impact on the incidence of both types of poverty, while it is more successful in reducing their intensity. We also estimate that REI would contribute to raising GDP by 0.14 percentage points through an increase in private consumption.

Keywords: Microsimulation; Minimum Income Schemes; Poverty; Italy. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.rivisteweb.it/download/article/10.1429/90853 (application/pdf)
https://www.rivisteweb.it/doi/10.1429/90853 (text/html)
Access to full text is restricted to subscribers

Related works:
Working Paper: The impact of REI on Italian households’ income: A micro and macro evaluation (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mul:je8794:doi:10.1429/90853:y:2018:i:2:p:103-134

Access Statistics for this article

Politica economica is currently edited by Giuseppe Marotta

More articles in Politica economica from Società editrice il Mulino
Bibliographic data for series maintained by ().