Minimum Income in Portugal: Changing the Rules in Times of Crisis

The aim of this paper is to estimate the impact on the distribution of household income and poverty of the 2010 reform of the law that establish the non-contributory social benefits entitlement conditions in Portugal, with particular incidence in the Social Integration Income (RSI). Carried out in a period of serious deepening economic and social crisis, the changes in the resources condition appear fundamentally as a way of limiting and reducing the resources earmarked for social policies usage, precisely at the time when increased social insecurity should lead to a significant increase in the importance of such social policies. Using micro-data from the European Union Statistics on Income and Living Conditions (EU-SILC), we simulate the impact of the reform and estimate its effects on the income distribution and on different dimensions of monetary poverty. The change in the size of government expenditure required to finance these programs will also be estimated.Social Policy, Income Distribution, Inequality, Poverty Alleviation, Portugal

Monetary Poverty, Material Deprivation and Consistent Poverty in Portugal

In this paper we use the Portuguese component of the European Union Statistics on Income and Living Conditions (EU-SILC) to develop a measure of consistent poverty in Portugal. It is widely agreed that being poor does not simply mean not having enough monetary resources. It also reflects a lack of access to the resources required to enjoy a minimum standard of living and participation in the society one belongs to. The coexistence of material deprivation and monetary poverty leads to the concept of consistent poverty. The assessment of material deprivation and the identification of the households and individuals living in consistent poverty could become essential parts of the national anti-poverty strategy and crucial instruments in the definition of the target groups in social policy.Multidimensional poverty measurement, material deprivation, consistent poverty, Portugal.

Anti-poverty effectiveness and efficiency of the Guaranteed Minimum Income Programme in Portugal

The objective of this paper is to estimate the impact of the Portuguese Guaranteed Minimum Income (GMI) Programme on income distribution and to evaluate its effectiveness and efficiency in fighting situations of poverty and social exclusion. We estimate its impact on the distribution of household incomes and poverty as well as the amount of government expenditure necessary to finance the programme. The simulation shows that 4.8% of domestic households and 5.7% of the population are eligible to receive the GMI. The programme has a small but positive impact on reducing inequality. Similarly, analysis of the effectiveness of the GMI in terms of poverty reduction shows that it has a small but positive impact on the poverty rate. However, the most important consequences of the GMI are sharp gains in the measures of poverty intensity and severity. The efficiency indicators associated with the programme show that 85% of the transfers are awarded to poor people and that 82% of the transfers effectively contributes towards reducing the poverty gap

Efficacy of anti-poverty and welfare programs in Portugal : the joint impact of the CSI and RSI

The aim of this paper is to estimate the joint impact on the distribution of household income and poverty of the implementation of two major anti‐poverty measures in Portugal: the “Solidarity Supplement for the Elderly” (CSI) and the “Social Integration Income” (RSI). These two means‐tested measures were designed as the main components of the anti‐poverty social policy in Portugal, but they are directed at different groups of the population and have different objectives in terms of poverty reduction. Implemented since 1997, the aim of the RSI is to reduce extreme poverty through the reduction of poverty intensity of the most vulnerable sectors of the population. The CSI,gradually introduced since 2006, has the explicit objective of reducing the incidence of poverty on older people, its threshold defined at the level of the poverty line. Using a prototype of the Portuguese microsimulation model MicroSimPT , based on household micro‐data from the European Union Statistics on Income and Living Conditions (EU‐SILC), we simulate the impact of each measure and their joint effect on the income distribution and on different dimensions of monetary poverty. The size of government expenditure required to finance these programs will also be estimated

Income distribution and poverty in Portugal [1994/95] : A Comparison between the European Community Household Panel and the Household Budget Survey

The aim of this study is to give a broad picture of the income distribution and the level of inequality and poverty in Portugal as revealed by the two most recent family surveys produced by the Portuguese Statistical Office: the European Community Household Panel and the Household Budget Survey. The results obtained consistently point to a very unequal distribution of income, with high levels of inequality associated with high poverty rates. These main findings are not influenced by the choice of survey, revealing a high degree of consistency between the two sources

The redistributive impact of the guaranteed minimum income programme in Portugal

In this paper we evaluate the impact of the Portuguese Guaranteed Minimum Income Programme (GMI) on the income distribution in Portugal, and discuss its effectiveness and efficiency in fighting poverty and social exclusion in the country. We measure its impact on the distribution of household incomes and poverty, as well as the amount of government expenditure required to finance it. Our results show that 5.3% of households and 6.5% of the population are eligible to receive GMI. The programme has a small but positive impact on reducing inequality. Furthermore, the analysis of the effectiveness of the GMI shows that it has a positive impact on reducing the poverty rate. However, the most important consequence of the GMI is the sharp improvements in the measures of poverty intensity and severity. The efficiency indicators associated with the programme show that 92% of the transfers are awarded to poor people and that 89% of the transfers effectively contribute towards reducing the poverty gap. A very preliminary assessment of the take-up associated with the program shows that only 72 per cent of the families entitled to receive benefits from the programme are actually receiving it.info:eu-repo/semantics/publishedVersio

Minimum income in Portugal : changing the rules in times of crisis

The aim of this paper is to estimate the impact on the distribution of household income and poverty of the 2010 reform of the law that establish the non-contributory social benefits entitlement conditions in Portugal, with particular incidence in the Social Integration Income (RSI). Carried out in a period of serious deepening economic and social crisis, the changes in the resources condition appear fundamentally as a way of limiting and reducing the resources earmarked for social policies usage, precisely at the time when increased social insecurity should lead to a significant increase in the importance of such social policies. Using micro-data from the European Union Statistics on Income and Living Conditions (EU-SILC), we simulate the impact of the reform and estimate its effects on the income distribution and on different dimensions of monetary poverty. The change in the size of government expenditure required to finance these programs will also be estimated

The redistributive impact of the guaranteed minimum income programme in Portugal

In this paper we evaluate the impact of the Portuguese Guaranteed Minimum Income Programme (GMI) on the income distribution in Portugal, and discuss its effectiveness and efficiency in fighting poverty and social exclusion in the country. We measure its impact on the distribution of household incomes and poverty, as well as the amount of government expenditure required to finance it. Our results show that 5.3% of households and 6.5% of the population are eligible to receive GMI. The programme has a small but positive impact on reducing inequality. Furthermore, the analysis of the effectiveness of the GMI shows that it has a positive impact on reducing the poverty rate. However, the most important consequence of the GMI is the sharp improvements in the measures of poverty intensity and severity. The efficiency indicators associated with the programme show that 92% of the transfers are awarded to poor people and that 89% of the transfers effectively contribute towards reducing the poverty gap. A very preliminary assessment of the take-up associated with the program shows that only 72 per cent of the families entitled to receive benefits from the programme are actually receiving it

The impact of a ‘minimum guaranteed income program’ in Portugal

The objective of this paper is to estimate the impact of the Portuguese Minimum Guaranteed Income Program (RMIG). We estimate its impact on the distribution of household incomes and poverty as well as the size of government expenditures necessary to finance the program. The baseline adopted is constructed under the assumption of no behavioural responses to the transfer mechanism and of total participation of all eligible households. The simulation shows that 4,8% of domestic households and 5,7% of the population are eligible to receive the RMIG. The Program has a small but positive impact in reducing inequality. However, taking labour supply effects into account results in a smaller gain in inequality reduction. Similarly, we have a small but positive impact on the poverty rate for individuals. This gain, however, is almost cancelled when labour supply reactions are taken into account. However the most important consequences of the RMIG are sharp gains in the measures of poverty severity and intensity. In these dimensions, taking into account the labour supply incentives of the RMIG does not reduce substantially the positive impacts of the Program.info:eu-repo/semantics/publishedVersio

The impact of a "Minimum Guaranteed Income Program" in Portugal

The objective of this paper is to estimate the impact of the Portuguese Minimum Guaranteed Income Program (RMIG). We estimate its impact on the distribution of household incomes and poverty as well as the size of government expenditures necessary to finance the program. The baseline adopted is constructed under the assumption of no behavioural responses to the transfer mechanism and of total participation of all eligible households. The simulation shows that 4,8% of domestic households and 5,7% of the population are eligible to receive the RMIG. The Program has a small but positive impact in reducing inequality. However, taking labour supply effects into account results in a smaller gain in inequality reduction. Similarly, we have a small but positive impact on the poverty rate for individuals. This gain, however, is almost cancelled when labour supply reactions are taken into account. However the most important consequences of the RMIG are sharp gains in the measures of poverty severity and intensity. In these dimensions, taking into account the labour supply incentives of the RMIG does not reduce substantially the positive impacts of the Program