The Economic Effects of a Local Minimum Income Support Program
SERIES Working Paper No. 29
Posted: 30 May 2011
Date Written: December 1, 2009
Since Reddito Minimo d’Inserimento pilot experiment ended, a number of papers have attempted to study minimum income policies in Italy. Contributions have aimed at providing insight for possible future program implementations. In this paper we present a case study as an applied contribution to this debate. We analyze a minimum income support program implemented in a small town in the South of Italy, Mola di Bari, by using a new dataset which has been designed and collected for the purpose. With respect to the program, we describe the policy intervention and we analyze such issues as (i) the eligibility criteria, (ii) the targeting choices and results, (iii) the distributive and the welfare effect on the beneficiaries and on the overall town population (iv) the effect on the programs dependency, i.e do households involved in different programs leave the extreme poverty condition with a different probability?
Keywords: Minimum income, policy evaluation, poverty trap
JEL Classification: I38, J22, J08
Suggested Citation: Suggested Citation