The Impact of REI on Italian Households’ Income: A Micro and Macro Evaluation

Prometeia Associazione Note di lavoro 2018-01

31 Pages Posted: 9 May 2018

See all articles by Massimo Baldini

Massimo Baldini

Università degli studi di Modena e Reggio Emilia

Elizabeth J. Casabianca

Dipartimento di Analisi e Ricerca Economica, Prometeia; Università Politecnica delle Marche

Elena Giarda

Dipartimento di Analisi e Ricerca Economica, Prometeia; Università degli studi di Modena e Reggio Emilia (UNIMORE) - Center for Research in Banking and Finance (CEFIN); Fondazione Rodolfo Debenedetti

Lorenzo Lusignoli

Confederazione Italiana Sindacati Lavoratori (CISL)

Date Written: April 23, 2018

Abstract

In 2017, Italy’s government introduced a minimum income scheme, the so-called Income inclusion programme (REI, Reddito di inclusione). REI is a selective, means-tested and conditional scheme that aims at supporting incomes of those more in need. Its structure was recently modified to reach a larger percentage of the poor. In this paper, we simulate the impact of REI on household incomes and evaluate its effects with respect to poverty alleviation and inequality reduction. The analysis is based on the 2015 wave of IT-SILC, the Italian module of European Union Statistics on Income and Living Conditions. Our results show that, under full take-up, REI will reach 45.8% of households in absolute poverty and 22.5% of those in relative poverty. However, it has a mild impact on the incidence of both types of poverty, while it is more successful in reducing their intensity. We also estimate that REI would contribute to raising GDP by 0.14 percentage points through an increase in private consumption.

Keywords: Microsimulation, Minimum Income Schemes, REI, Poverty, Italy

JEL Classification: D31, I32, I38

Suggested Citation

Baldini, Massimo and Casabianca, Elizabeth Jane and Giarda, Elena and Lusignoli, Lorenzo, The Impact of REI on Italian Households’ Income: A Micro and Macro Evaluation (April 23, 2018). Prometeia Associazione Note di lavoro 2018-01. Available at SSRN: https://ssrn.com/abstract=3167745 or http://dx.doi.org/10.2139/ssrn.3167745

Massimo Baldini

Università degli studi di Modena e Reggio Emilia ( email )

Viale A. Allegri 9
41100 Modena, Modena 42121
Italy

Elizabeth Jane Casabianca

Dipartimento di Analisi e Ricerca Economica, Prometeia ( email )

Viale G. Marconi 43
Bologna
Italy

Università Politecnica delle Marche ( email )

Piazzale Martelli 8
Ancona, 18039
Italy

Elena Giarda (Contact Author)

Dipartimento di Analisi e Ricerca Economica, Prometeia ( email )

Via G. Marconi 43
Bologna, 40122
Italy
+390516480911 (Phone)
+39051220753 (Fax)

HOME PAGE: http://https://www.prometeia.it/en/research-insights

Università degli studi di Modena e Reggio Emilia (UNIMORE) - Center for Research in Banking and Finance (CEFIN) ( email )

via Berengario 51
Modena, modena I-41100
Italy

Fondazione Rodolfo Debenedetti ( email )

Via Roentgen 1,
Room 5.C1-11
Milan, Milano 20136
Italy

Lorenzo Lusignoli

Confederazione Italiana Sindacati Lavoratori (CISL) ( email )

Via Po n. 21
Roma, 00198
Italy

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