The Employment Effects of the Italian Minimum Guaranteed Income Scheme Reddito di Cittadinanza

Maria Luisa Maitino, Marco Mariani (), Valentina Patacchini, Letizia Ravagli and Nicola Sciclone
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Maria Luisa Maitino: IRPET Regional Institute for Economic Planning of Tuscany
Marco Mariani: IRPET Regional Institute for Economic Planning of Tuscany
Valentina Patacchini: IRPET Regional Institute for Economic Planning of Tuscany
Letizia Ravagli: IRPET Regional Institute for Economic Planning of Tuscany
Nicola Sciclone: IRPET Regional Institute for Economic Planning of Tuscany

Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, 2024, vol. 10, issue 2, No 7, 649-681

Abstract: Abstract The Italian guaranteed minimum income programme is the topic of a heated debate scarcely supported by empirical evidence. We investigate the effects of the programme on the number of days worked by different types of vulnerable jobseekers who receive the related income transfer in 2019 and are subject to activation attempts by employment services. We use data from Tuscany, in many ways a typical Italian region. To draw causal claims, we adopt a difference-in-differences approach with multiple time periods and staggered treatment adoptions. Our findings suggest that the programme has very limited heterogeneous effects among different types of users but also that, all in all, it is rather employment-neutral, in the sense that it neither creates significant disincentives to work nor succeeds in creating sufficient employment opportunities to solve the problem of job insecurity. An anti-poverty strategy that does not feed further welfare dependency would require a qualitative leap forward in activation efforts by employment services.

Keywords: Minimum income schemes; Unemployment; Welfare (search for similar items in EconPapers)
JEL-codes: H53 I38 J22 J64 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s40797-023-00263-1

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