A Minimum Income in Italy
Letizia Ravagli
Istituto Regionale
Programmazione
Economica della
Toscana
ISER
28 February 2014
InGRID Winter School:
Using EUROMOD for cross country microsimumation
General Information: about the project
Project approved for a transnational visiting to ISER by the
InGRID selection panel in September 2013
General Information: my home institution

IRPET: Regional Institute for Economic Planning of
Tuscany (Italy)

Models:

Macroeconomics models: Input Output, SAM, DANTE

Dynamic microsimulation model: Irpetdin

Static microsimulation model for firms: Marte

Tax-benefit microsimulation model: MicroReg
General Information: MicroReg in brief

MicroReg: is a static microsimulation model constructed by
IRPET for the Tuscan Region policy maker

Database: IT-SILC

Main feature: multi-regional, covers all italian regions


Direct taxes (PIT, additional regional PIT), indirect taxes
(VAT) and property taxes (ICI, IMU)
In cash (e.g., family allowances) and in kind benefits (e.g.,
health and education)
Project description: context
People at risk of poverty or social exclusion (%)
Europe 2020 Srategy Indicator
40
35
30
25
20
15
10
5
After/before crisis Var. (2012-2007)
Level after crisis (2012)
Netherlands
Sweden
Finland
Luxemb.
Austria
Denmark
Germany
Belgium
United
Kingdom
Portugal
Spain
Italy
Greece
-5
France
r
0
Project description: context

Minimum Income (MI) is a way to tackle poverty.

Since
1992 the European Commission, with the Council
Recommendation 92/441/EEC, called for the introduction in all
Member States of a guaranteed MI.



In 2010, as part of the Europe 2020 Strategy, a resolution of the
European Parliament emphasized the role of MI in fighting poverty and
promoting an inclusive society.
Almost all the EU countries adopted a MI scheme with different rules and
approaches.
Italy still lacks a universal form of protection against poverty and social
exclusion.
Project description: objectives in brief
I.
To study european experiences of MI in order
to identify the best ones;
II.
to design a MI for Italy and to estimate its
costs and benefits.
Project description: objectives in details





Comparing MI in European countries in terms of coverage (comprehensive?,
categorical?, means-testing?) and adequacy (in reducing poverty and poverty
intensity).
Analyzing the limits of current Italian measures against poverty (supplementary
pension, social pension, social card, some regional MI).
Designing a proposal for a MI in Italy by evaluating different scenarios.
Identifying possible funding schemes for a MI in Italy (e.g., raising taxes,
redistributing existing instruments).
Analyzing the distributional effects of a MI in Italy (winners and losers, impact on
reducing poverty and inequality).
Project description: methods


EUROMOD will be used to:

simulate MI in european countries

simulate italian current instruments against poverty

simulate a MI in Italy

simulate a funding scheme
Analysis of simulation results with a statistical software (e.g. Stata)
Project description: some references

Figari F., Haux T., Matsaganis M., Sutherland H. (2010), Coverage and adequacy of minimum
income schemes in the European Union, EUROMOD Working Paper No. EM8/10.

Marchal S., Marx I., Van Mechelen N. (2011), Do Europe’s Minimum Income Schemes Provide
Adequate Shelter against the Economic Crisis and How, If at All, Have Governments Responded?, IZA
DP No. 6264.

Baldini M. , Bosi P. , Ciani E., Colombini S. , Mesini D., Ranci Ortigosa E., Sala M. (2013), Il RMI:
articolazione, beneficiari e sostenibilità finanziaria, Speciale: Nella crisi, oltre la crisi Costruiamo il
welfare di domani Proposta per una riforma delle politiche e degli interventi socio-assistenziali
attuale e attuabile, Prospettive sociali e sanitarie, n. 8-10/2013.

Monti P. e Pellizzari M. (2010), Implementing a guaranteed minimum income in Italy: An empirical
analysis of costs and political feasibility, Giornale degli Economisti. - GDE (Giornale degli Economisti
e Annali di Economia), Bocconi University. - Vol. 69.2010, 1, p. 67-100.