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An ex ante evaluation of the Revenu de Solidarité Active by micro-macro simulation techniques

Luciano Canova (), Luca Piccoli and Amedeo Spadaro ()
Additional contact information
Luciano Canova: Enrico Mattei School, Postal: c/o eni Corporate University, Via San Salvo 1, 20097 San Donato Milanese, Italy
Amedeo Spadaro: Universitat de les Illes Balears, Postal: Edifici Jovellanos, Crta Valldemossa, km 7,5 07122 Palma de Mallorca (Spain)

No 67, DEA Working Papers from Universitat de les Illes Balears, Departament d'Economía Aplicada

Abstract: This paper aims to investigate the effects of the introduction of an active welfare state measure, the Revenu de Solidarité Active (RSA), in France. The RSA replaced the old system of social minima, comprised by RMI and API. By using a micro-macro simulation model we characterize the effects on households’ disposable income, labour supply, wages, GDP, deficit, and other micro and macroeconomic aspects. We find that, although increasing public expenditure, RSA largely repays its cost by reducing involuntary unemployment, increasing labour supply and private consumption, and thus improving GDP and the deficit/GDP ratio. Poverty and inequality are also reduced significantly.

Keywords: revenue de Solidarité active; RSA; active welfare state; microsimulation; CGE; micro-macro; labour supply; policy evaluation (search for similar items in EconPapers)
JEL-codes: I38 C63 C68 J22 H31 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-cmp
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Journal Article: An ex ante evaluation of the Revenu de Solidarité Active by micro–macro simulation techniques (2015) Downloads
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