The Economic effects of a Local Minimum Income Support Program

Abstract

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 effects on the beneficiaries and on the overall town population (iv) the incentive effects, i.e. the effects on the labour market partecipation.minimum income; policy evaluation; poverty trap