The Redistributive Impact of the Guaranteed Minimum Income Programme in Portugal

Carlos Rodrigues

No 2004/09, Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa

Abstract: In this paper we evaluate the impact of the Portuguese Guaranteed Minimum Income Programme (GMI) on the income distribution in Portugal, and discuss its effectiveness and efficiency in fighting poverty and social exclusion in the country. We measure its impact on the distribution of household incomes and poverty, as well as the amount of government expenditure required to finance it. Our results show that 5.3% of households and 6.5% of the population are eligible to receive GMI. The programme has a small but positive impact on reducing inequality. Furthermore, the analysis of the effectiveness of the GMI shows that it has a positive impact on reducing the poverty rate. However, the most important consequence of the GMI is the sharp improvements in the measures of poverty intensity and severity. The efficiency indicators associated with the programme show that 92% of the transfers are awarded to poor people and that 89% of the transfers effectively contribute towards reducing the poverty gap. A very preliminary assessment of the take-up associated with the program shows that only 72 per cent of the families entitled to receive benefits from the programme are actually receiving it.

Keywords: Income Distribution; Inequality; Poverty Alleviation; Social Policy; Portugal. (search for similar items in EconPapers)
JEL-codes: D63 I32 I38 (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-edu
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:ise:isegwp:wp92004

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More papers in Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa Department of Economics, ISEG - Lisbon School of Economics and Management, Universidade de Lisboa, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL.
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