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Minimum income schemes in Europe: is there a trade-off with activation policies?

Minimum income schemes in Europe: is there a trade-off with activation policies? This paper makes two contributions to the literature. First, by employing a macro-level institutional dataset on benefit levels for social assistance (SA) and minimum income protection (MIP) in 22 European countries in the period 1990–2013, I show that the adequacy of income support for low-income inactive individuals in European welfare states has been steadily decreasing since 1994. Second, the paper revisits empirically the hypothesis of a trade-off between the adequacy of out-of-work benefits and the public expenditure on active labor market policies (ALMPs). The empirical results of the fixed effects model show that the trade-off does not appear to be significant in any of the tested specifications. The results are robust to the introduction of a set of conventional controls related to the labor market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png IZA Journal of European Labor Studies Springer Journals

Minimum income schemes in Europe: is there a trade-off with activation policies?

IZA Journal of European Labor Studies , Volume 6 (1) – Jan 13, 2017

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Publisher
Springer Journals
Copyright
Copyright © 2017 by The Author(s).
Subject
Economics; Labor Economics; Population Economics; European Integration
eISSN
2193-9012
DOI
10.1186/s40174-016-0073-2
Publisher site
See Article on Publisher Site

Abstract

This paper makes two contributions to the literature. First, by employing a macro-level institutional dataset on benefit levels for social assistance (SA) and minimum income protection (MIP) in 22 European countries in the period 1990–2013, I show that the adequacy of income support for low-income inactive individuals in European welfare states has been steadily decreasing since 1994. Second, the paper revisits empirically the hypothesis of a trade-off between the adequacy of out-of-work benefits and the public expenditure on active labor market policies (ALMPs). The empirical results of the fixed effects model show that the trade-off does not appear to be significant in any of the tested specifications. The results are robust to the introduction of a set of conventional controls related to the labor market.

Journal

IZA Journal of European Labor StudiesSpringer Journals

Published: Jan 13, 2017

References