IDEAS home Printed from https://ideas.repec.org/a/spr/series/v10y2019i3d10.1007_s13209-019-00203-2.html
   My bibliography  Save this article

Assessing the impact of a minimum income scheme: the Basque Country case

Author

Listed:
  • Sara Rica

    (University of the Basque Country
    ISEAK)

  • Lucía Gorjón

    (ISEAK
    FEDEA)

Abstract

In this paper, we evaluate the impact of a minimum income scheme (MIS) in the Basque Country, one of Spain’s 17 autonomous regions. In particular, we assess whether the policy delays entry into employment for recipients, as well as the extent to which activating policies aimed at enabling recipients of the MIS to enter employment work. To do so, we use administrative data of the universe of individuals registered in the public employment service in the region. On average, the minimum income scheme does not delay entry into employment, although the impact differs from one demographic group to another. Furthermore, active labour market policies designed for this group, in particular training, have a strong positive impact on finding a new job.

Suggested Citation

  • Sara Rica & Lucía Gorjón, 2019. "Assessing the impact of a minimum income scheme: the Basque Country case," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 10(3), pages 251-280, November.
    • Handle: RePEc:spr:series:v:10:y:2019:i:3:d:10.1007_s13209-019-00203-2
    DOI: 10.1007/s13209-019-00203-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13209-019-00203-2
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1007/s13209-019-00203-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bruno Crépon & Esther Duflo & Marc Gurgand & Roland Rathelot & Philippe Zamora, 2013. "Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(2), pages 531-580.
    2. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-782, July.
    3. Nicholas-James Clavet & Jean-Yves Duclos & Guy Lacroix, 2013. "Fighting Poverty: Assessing the Effect of Guaranteed Minimum Income Proposals in Quebec," Canadian Public Policy, University of Toronto Press, vol. 39(4), pages 491-516, December.
    4. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
    5. Salehi-Isfahani, Djavad & Mostafavi-Dehzooei, Mohammad H., 2018. "Cash transfers and labor supply: Evidence from a large-scale program in Iran," Journal of Development Economics, Elsevier, vol. 135(C), pages 349-367.
    6. repec:hal:pseose:halshs-00840901 is not listed on IDEAS
    7. repec:hal:journl:hal-03234843 is not listed on IDEAS
    8. Lalive, Rafael & Zweimuller, Josef, 2004. "Benefit entitlement and unemployment duration: The role of policy endogeneity," Journal of Public Economics, Elsevier, vol. 88(12), pages 2587-2616, December.
    9. Etienne Wasmer, 2012. "Ex-ante and ex-post evaluation of the 1989 French welfare reform using a natural experiment : the 1908 social laws in Alsace-Moselle," 2012 Meeting Papers 478, Society for Economic Dynamics.
    10. Emily Oster, 2019. "Unobservable Selection and Coefficient Stability: Theory and Evidence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 187-204, April.
    11. Damon Jones & Ioana Marinescu, 2022. "The Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund," American Economic Journal: Economic Policy, American Economic Association, vol. 14(2), pages 315-340, May.
    12. Gardeazabal, Javier & Vega Bayo, Ainhoa, 2016. "The Economic Cost of Armed Conflict," DFAEII Working Papers info:eu-repo/grantAgreeme, University of the Basque Country - Department of Foundations of Economic Analysis II.
    13. Eichhorst, Werner & Konle-Seidl, Regina, 2016. "Evaluating Labour Market Policy," IZA Discussion Papers 9966, Institute of Labor Economics (IZA).
    14. Card, David & Levine, Phillip B., 2000. "Extended benefits and the duration of UI spells: evidence from the New Jersey extended benefit program," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 107-138, October.
    15. Yolanda Rebollo-Sanz & J. García-Pérez, 2015. "Are unemployment benefits harmful to the stability of working careers? The case of Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(1), pages 1-41, March.
    16. Jan C. van Ours & Milan Vodopivec, 2006. "How Shortening the Potential Duration of Unemployment Benefits Affects the Duration of Unemployment: Evidence from a Natural Experiment," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 351-378, April.
    17. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
    18. Knut Roed & Tao Zhang, 2003. "Does Unemployment Compensation Affect Unemployment Duration?," Economic Journal, Royal Economic Society, vol. 113(484), pages 190-206, January.
    19. Ayala, Luis & Paniagua, Milagros, 2017. "The impact of in-work benefits on female labor supply and income distribution in Spain," EUROMOD Working Papers EM17/17, EUROMOD at the Institute for Social and Economic Research.
    20. Luis Ayala & Magdalena Rodríguez, 2010. "Explaining welfare recidivism: what role do unemployment and initial spells have?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 373-392, January.
    21. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h48202h1n is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luis Ayala & Mariya Melnychuk, 2024. "Differential Effects of Expansions and Recessions on Social Assistance Duration: The Case of Regional Minimum Income Programmes in Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 248(1), pages 115-141, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rafael Lalive & Jan Ours & Josef Zweimüller, 2011. "Equilibrium unemployment and the duration of unemployment benefits," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1385-1409, October.
    2. Lionel Cottier & Kathrin Degen & Rafael Lalive, 2020. "Can unemployment benefit cuts improve employment and earnings?," Empirical Economics, Springer, vol. 59(2), pages 659-699, August.
    3. Martín-Román, Ángel L., 2022. "Beyond the added-worker and the discouraged-worker effects: the entitled-worker effect," Economic Modelling, Elsevier, vol. 110(C).
    4. Ignacio Moral-Arce & Javier Martín-Román & Ángel L. Martín-Román, 2019. "Cessation of Activity Benefit for Spanish Self-employed Workers: A Heterogeneous Impact Evaluation," Hacienda Pública Española / Review of Public Economics, IEF, vol. 231(4), pages 41-79, December.
    5. Bennmarker, Helge & Skans, Oskar Nordström & Vikman, Ulrika, 2013. "Workfare for the old and long-term unemployed," Labour Economics, Elsevier, vol. 25(C), pages 25-34.
    6. Emmanuel Duguet & Florent Frémigacci & Yannick L’Horty, 2008. "Indemnisation du chômage et retour à l’emploi : un examen économétrique," Documents de recherche 08-07, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    7. Jan Boone & Jan Ours, 2012. "Why is There a Spike in the Job Finding Rate at Benefit Exhaustion?," De Economist, Springer, vol. 160(4), pages 413-438, December.
    8. Konstantinos Tatsiramos & Jan C. Ours, 2014. "Labor Market Effects Of Unemployment Insurance Design," Journal of Economic Surveys, Wiley Blackwell, vol. 28(2), pages 284-311, April.
    9. Kyyrä, Tomi & Ollikainen, Virve, 2008. "To search or not to search? The effects of UI benefit extension for the older unemployed," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2048-2070, October.
    10. Bart, COCKX & Jean, RIES, 2004. "The Exhaustion of Unemployment Benefits in Belgium. Does it Enhance the Probability of Employment ?," LIDAM Discussion Papers IRES 2004016, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    11. Rafael Lalive & Camille Landais & Josef Zweimüller, 2015. "Market Externalities of Large Unemployment Insurance Extension Programs," American Economic Review, American Economic Association, vol. 105(12), pages 3564-3596, December.
    12. Rafael Lalive & Jan Van Ours & Josef Zweimuller, 2006. "How Changes in Financial Incentives Affect the Duration of Unemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(4), pages 1009-1038.
    13. Lalive, R. & van Ours, J.C. & Zweimüller, J., 2006. "How Changes in Potential Benefit Duration Affect Equilibrium Unemployment," Other publications TiSEM 9c1e2e2f-85cf-48b2-b608-8, Tilburg University, School of Economics and Management.
    14. Uusitalo, Roope & Verho, Jouko, 2010. "The effect of unemployment benefits on re-employment rates: Evidence from the Finnish unemployment insurance reform," Labour Economics, Elsevier, vol. 17(4), pages 643-654, August.
    15. Le Barbanchon, Thomas, 2016. "The effect of the potential duration of unemployment benefits on unemployment exits to work and match quality in France," Labour Economics, Elsevier, vol. 42(C), pages 16-29.
    16. Tito Boeri & Jan van Ours, 2013. "The Economics of Imperfect Labor Markets: Second Edition," Economics Books, Princeton University Press, edition 1, number 10142.
    17. Yolanda Rebollo-Sanz & J. García-Pérez, 2015. "Are unemployment benefits harmful to the stability of working careers? The case of Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 6(1), pages 1-41, March.
    18. Simoes, Nadia, 2013. "Subsídio de desemprego: uma revisão da literatura teórica e empírica [Unemployment insurance: a survey]," MPRA Paper 52332, University Library of Munich, Germany.
    19. Pedro Portugal & John T. Addison, 2008. "Six Ways To Leave Unemployment," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(4), pages 393-419, September.
    20. Bruce D. Meyer & Wallace K. C. Mok, 2007. "Quasi-Experimental Evidence on the Effects of Unemployment Insurance from New York State," NBER Working Papers 12865, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Minimum income schemes; Active labour market policies; Poverty; Inverse probability weighting; Propensity score matching;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:series:v:10:y:2019:i:3:d:10.1007_s13209-019-00203-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.