Main Factors for a Proposal for a Social Protection Floor

Abstract

This paper makes a proposal for a basic income (BI) to cover the essential needs of citizens. First the factors that determine the amount spent on essential needs by individuals in Spain in 2010 are examined. Then the factors (number of family members, number of dependents, region of residence, characteristics of head of household, etc.) that determine essential needs are analyzed, based on the Spanish Household Budget Survey (2010), using quantile regression. The regression results are then used to draw up a BI proposal taking household type into account. The aim is to determine the amount of BI needed to protect people from social risks and the resulting insecurities while covering essential needs using those main factors. BI may thus be a powerful tool for combating poverty and inequality. Its main purpose is to meet the essential needs of individuals, so it could be used as a measure to guarantee a basic level of social and economic security for all members of society in place of current minimum income grants and other social benefits.