Do Europe's Minimum Income Schemes Provide Adequate Shelter Against the Economic Crisis and How, if at All, Have Governments Responded?

26 Pages Posted: 8 Jan 2012

See all articles by Sarah Marchal

Sarah Marchal

University of Antwerp

Ive Marx

University of Antwerp; IZA Institute of Labor Economics

Natascha Van Mechelen

University of Antwerp

Abstract

The present economic crisis comes against the background of decades of policy changes that have generally weakened the capacity of social safety nets to offer citizens with adequate resources for financial survival when labour markets fail to do so. Building on data for 24 European Union countries, this paper asks whether EU governments implemented additional measures during the first phase of the crisis to improve safety nets. Our data, drawn from a large network of national experts, show that many countries introduced supportive measures, in particular in the form of additional increases in gross minimum income benefits. More generous child benefits have also helped to increase net disposable incomes of families on minimum income. Behavioral requirements imposed on minimum income recipients have been neither tightened nor relaxed. In a limited number of countries, activation efforts aimed at minimum income recipients have been intensified. Despite some improvements, social safety nets in Europe remain far below widely accepted poverty thresholds, including the EU's own official measure.

Keywords: crisis measures, poverty, minimum incomes, social policy, Europe

JEL Classification: I38, H75, H12

Suggested Citation

Marchal, Sarah and Marx, Ive and Van Mechelen, Natascha, Do Europe's Minimum Income Schemes Provide Adequate Shelter Against the Economic Crisis and How, if at All, Have Governments Responded?. IZA Discussion Paper No. 6264, Available at SSRN: https://ssrn.com/abstract=1981220

Sarah Marchal (Contact Author)

University of Antwerp ( email )

Prinsstraat 13
Antwerp, Antwerp 2000
Belgium

Ive Marx

University of Antwerp ( email )

Prinsstraat 13
Antwerp, Antwerp 2000
Belgium

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Natascha Van Mechelen

University of Antwerp ( email )

Prinsstraat 13
Antwerp, Antwerp 2000
Belgium

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