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

Sara de la Rica (sara.delarica@iseak.eu) and Lucía Gorjón (lucia.gorjon@iseak.eu)
Additional contact information
Sara de la Rica: University of the Basque Country
Lucía Gorjón: Fundación ISEAK

No 10867, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: propensity score matching; inverse probability weighting; poverty; active labour market policies; minimum income schemes (search for similar items in EconPapers)
JEL-codes: C14 C21 C52 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2017-06
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published - published as 'Assessing the impact of a minimum income scheme: the Basque Country case' in: SERIEs, 2019, 10, 251 - 280

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