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Moving towards fairer regional minimum income schemes in Spain
[journal article]
Abstract Minimum income schemes aim at providing citizens with a minimum living standard. In some EU countries, their regulation and provision takes place at the subnational level. This is the case in Spain, where minimum income schemes are a heterogeneous and complex collection of regional benefits designed... view more
Minimum income schemes aim at providing citizens with a minimum living standard. In some EU countries, their regulation and provision takes place at the subnational level. This is the case in Spain, where minimum income schemes are a heterogeneous and complex collection of regional benefits designed and implemented at the regional level, by the Autonomous Communities. In June 2020, a complementary nationwide minimum income scheme was implemented. In this context, we use the European microsimulation model EUROMOD, together with microdata from the European Union Statistics on Income and Living Conditions, to comprehensively assess the performance of the whole minimum income system. We simulate a sequence of theoretical scenarios, considering different degrees of coverage and adequacy of these benefits and show that extending the coverage of the regional schemes would significantly alleviate poverty. However, it would not be sufficient to eliminate it and further increases in the benefit amounts would also be required. Furthermore, the new nationwide minimum income can potentially reduce the shortfall in income from the poverty line, if cost-shifting practices from the regional to the national budgetary level are limited. We discuss the importance of this case study in light of the decentralization of minimum income policies and derive some general policy implications.... view less
Keywords
Spain; minimum wage; poverty; simulation
Classification
Income Policy, Property Policy, Wage Policy
Free Keywords
coverage; adequacy; microsimulation; EUROMOD; EU-SILC 2018
Document language
English
Publication Year
2022
Page/Pages
p. 452-466
Journal
Journal of European Social Policy, 32 (2022) 4
DOI
https://doi.org/10.1177/09589287221088174
ISSN
1461-7269
Status
Published Version; peer reviewed