Minimum Income Research Articles

Non-take-up of in-work benefits: determinants, benefit erosion and indexing

Non-take-up of welfare schemes is a key concern of policy effectiveness. Building on studies that have shown the low take-up of minimum income schemes, our case study of Ireland’s Working Family Payment is the first to analyse non-take-up of an in-work benefit and its determinants with a special focus on labour market factors. Based on EU-SILC (2014–2019) we estimate a non-take-up rate between 63 and 76%, which poses a major obstacle for effective poverty prevention. Moreover, we stress that non-take-up of in-work benefits differs to minimum income schemes. We provide new evidence on how labour market characteristics play an important role in explaining non-take-up, especially self-employment and the interaction with unemployment benefits. Benefit erosion is a key factor in declining eligibility, which should be addressed by indexing wages and prices. Furthermore, we propose policy reforms around automatic enrolment or tax credits to mitigate non-take-up and alleviate in-work poverty.

Monetary work-incentives within the Austrian tax and benefit system

AbstractThis paper analyses incentives to take up work or to increase working hours within the Austrian tax and benefit system. We analyze the monetary work incentives for a variety of family constellations (singles, single parents, families with children) with different incomes from dependent employment, when receiving unemployment benefits, and in the system of means-tested minimum income. Moreover, the effect of different earning ceilings (childcare and unemployment) and childcare costs is additionally investigated. Insufficient and, therefore, privately provided childcare is viewed as a missing component of the benefit system. The Austrian tax and benefit system is designed to be incentive-compatible for singles. Only marginal employment without deductions in the event of unemployment creates a negative incentive to expand employment beyond this extent. However, raising children creates negative monetary incentives. On the one hand, through the upper limits on additional earnings during times of childcare allowance, but especially when childcare costs arise.

A macroeconomic perspective on taxing multinational enterprises

We develop a general-equilibrium model to study the macroeconomic consequences of international profit shifting by multinational enterprises (MNEs). In our model, MNEs shift profits by exploiting intangible capital transfer pricing rules, which makes intangible investment more attractive and leads to higher output at home and abroad. We use the model to quantify the effects of two reforms proposed by the OECD: (i) reallocating MNEs’ profit tax bases to the countries where they sell their products; and (ii) a minimum global corporate income tax. Both reforms would reduce profit shifting substantially, but (i) would reduce global output whereas (ii) would have little macroeconomic impact. The reforms’ distributional implications would also be important. In high-tax countries, tax revenues would increase more than output declines, raising gross national income and enabling redistribution that could offset lower wages. In contrast, output and tax revenues would both drop in low-tax countries, significantly reducing national income.

The Reform of the Minimum Income Scheme in Italy: Distributive Effects

The Reform of the Minimum Income Scheme in Italy: Distributive Effects

What’s pension got to do with it? Mortality inequality at older ages

Abstract Background The potential role of social protection systems and welfare states for population health and mortality has attracted increased interest in recent decades but mostly focused on overall characteristics or clusters of countries. Moreover, often neglecting older people even though the great majority of all deaths in high-income countries occur at later ages. We focus on the key social protection scheme for old adults: the generosity of the level of pensions. We compare pensions based on previous work history to basic minimum pensions. Our study is novel both by linking pension system to remaining life expectancy at age 65(LE65+), but also by studying the association to variation in LE65+, since that gives a measure of inequality. We do so across countries and over time. Methods and Materials Our sources of data are from the Human Mortality Database and the Social Policy Indicator Database. Data for OECD countries are matched over a long period of time and analysed by pooled time-series regression analyses with fixed effects. Results Although the results indicate that the generosity of pensions based on both pervious work history and basic minimum income our results primarily show the importance of basic minimum income. Here the effect sizes are larger and especially for women than for men (0.149*** vs. 0,.0715***). Concerning the variation in LE (65+) we find that more generous basic pensions are associated with reduced variation for women -4.64e-05**. Conclusions We provide new insights in how pension policies potentially influence mortality among older persons especially by extending our analyses also to inequality in mortality. Our results points to the importance of basic pensions. The gendered division of labour is a plausible explanation for the findings and to have an adequate pension for all should be of primary concern for public health. Key messages • Adequate basic pension for all of importance for remaining life expectancy among older people. • Adequate basic pension for all of importance for reducing mortality inequality among women.

Exploring the Association Between Minimum Wage Policy, Income Inequality, and Obesity Rates in US Counties.

To examine the interaction between minimum wage policy, income inequality, and obesity rates among U.S. counties, and how this relationship is shaped by policy, place, and racial/ethnic composition in a county. We used the County Health Rankings Data for obesity ratio (measured by Body Mass Index ≥ 30kg/m2) in US counties and combined it with the American Community Survey to include the Gini coefficient (GC) and population characteristics. The analytical sample included 3129 counties between 2015 and 2019. We ran several sets of regression analyses, controlling for county characteristics, access to healthy foods, and minimum wage categories as a policy influencer on the obesity ratio. In total, 31.7% of the population were obese, with wide variations across counties; during this time, counties' average GC was 0.442. Our findings showed that in the lack of any other predictors, GC has a positive association with the county obesity ratio (OLS 0.147, CI 0.122-0.173). Counties with minimum wage between $7.26-$9.0 and $9 + had lower obesity ratios by - 0.6 and - 2.8 percentage points, respectively, and counties with lower access to healthy foods had higher obesity ratio (Coeff = 0.022, CI 0.019-0.025). Income inequality is positively associated with the obesity ratio in counties. Access to healthy foods and state minimum wage policy predict obesity rates, with a lack of healthy foods increasing the ratio, while a higher minimum wage reduces it.

Health, economic and social impacts of the Brazilian cash transfer program on the lives of its beneficiaries: a scoping review

BackgroundThe Bolsa Família cash transfer Program (BFP) aims to break the poverty cycle by providing a minimum income to poor families conditioned on their investment in human capital (such as, education and health) and currently is the largest Program in the world in terms of the number of beneficiaries. Because there is a scarcity of reviews grouping studies on the impacts of the BFP, the objective of this scoping review was to identify and describe studies which evaluate the impact of the BFP on poverty, health, education, and other related outcomes.MethodsWe searched for quantitative, qualitative, and mixed-method articles that assessed the impact of the BFP on any aspect of the beneficiaries' lives between 2003 and March 2021. We included quantitative articles that used experimental, quasi-experimental or pre and post comparison designs. We excluded articles that analyzed impacts on political outcomes. There was no age restriction for the participants. The search was done in seven electronic databases.ResultsOne thousand five hundred forty-six papers were identified and 94 fulfilled the inclusion criteria. Poverty and health outcomes were the most common outcomes studied. We found consistent evidence of the positive impact of the BFP on poverty reduction, as well as employment outcomes. We also found positive impacts in relation to mortality rates for children and adults, school dropout and school attendance among children and adolescents, and violence related outcomes such as homicide, suicide, crime, and hospitalization. However, we also found some evidence that BFP increased intimate partner violence and gender stereotypes among women and no evidence of impact on teenage pregnancy.ConclusionsOverall, the studies included found that BFP showed positive impacts on most poverty, health and education outcomes. More studies are needed to confirm some results, especially about violence and stereotype against women as there were few evaluations on these outcomes.

Socioeconomic status and the perceived social support in mothers of children with autism spectrum disorder: the SOLACE-Brasil study

Objectives The socioeconomic status of families with children with autism spectrum disorder (ASD) can significantly impact the perception of social support. This study aimed to determine the perceived social support in mothers of children with ASD and to identify the sociodemographic variables associated with low perceived social support. Methods The SOLACE-Brasil study is a web-based cross-sectional survey that enrolled 1,924 mothers of children with ASD. Data were collected by distributing the online form on social media in a snowball fashion. Perceived social support was measured using the Multidimensional Scale of Perceived Social Support (MSPSS). Results The average score for perceived social support was 46.7 ± 16.3, with 24.9% of respondents reporting low perceived social support. Higher family income was associated with a lower chance of having low social support, independent of other confounding variables (OR: 0.54 95%CI: 0.34–0.85). Additionally, unemployment was independently associated with low social support (OR: 1.49 95%CI: 1.13–1.96). Divorced mothers and those with more than one child with ASD were more likely to report low perceived social support. Conclusions Assessing socioeconomic status is crucial for improving the perceived social support of families with children with ASD. Governmental policies should guarantee a minimum income and employment programs to support these families.

PROSPECTS OF ECONOMIC INTEGRATION OF UKRAINE WITHIN THE FRAMEWORK OF THE ASSOCIATION AGREEMENT WITH THE EU

The article examines the prospects of economic integration within the framework of the association agreement with the EU. It is noted that modern studies on the integration of Ukraine into the EU most often consider the problems of the Ukrainian dimension of European and Euro-Atlantic integration, Ukraine's acquisition of the status of a candidate for EU membership in the conditions of the war in Ukraine , the state European integration policy of Ukraine: theory, methodology, mechanisms, reengineering in international business. The main prospects for further economic integration of Ukraine into the EU are offered: strengthen responsibility for corruption schemes in the economy and in the field of intellectual property rights; implement the Tax Policy Strategy, which should take into account all sectoral aspects of the Association Agreement with the EU; strengthen control over public procurement; apply real tools to stimulate energy efficiency and innovative development (tax credit or tax discount), environmentally safe production (emission limits, correction factors, etc.), establish a tax-free minimum income of citizens and apply real control over persons receiving tax benefits. It is justified that the level of innovative activity should be stimulated primarily by tax benefits. It is shown that in foreign countries, the emphasis is primarily on the financing of innovative research by private companies, which allows them to obtain an innovative product, which can then be sold both inside the country and outside its borders. In Ukraine, for the most part, the state is not interested in such processes and does not create certain preferences for persons developing innovative products. It is proposed to introduce an innovative tax credit, which will allow subjects of innovative activity to reduce the tax burden from corporate income tax or postpone its payment. Thanks to this approach, Ukraine can obtain innovative products that will be in demand on the world market.

Enhancing the building resilience in a changing climate through a passive cooling roof: A case study in Camas (Seville, Spain)

Renovating buildings is a crucial mission for the coming decades to combat energy inefficiencies and produce a resilient building stock. The inefficient thermal envelope has significant implications for occupants, especially for families lacking the financial resources to maintain a healthy and comfortable indoor environment. In scenarios where households cannot afford or utilize HVAC systems and high temperatures are more frequent, building retrofits should prioritize reducing heat loss in winter and passively lowering indoor temperatures in the cooling season. This work introduces a new solution to enhance the liveability of a social housing building in southern Spain by integrating a double-skin roof with a conventional retrofit strategy, which incorporates passive cooling techniques – night ventilation and an evaporative cooling system – for effective heat dissipation based on available commercial solutions. An extensive monitoring campaign was conducted over three years to evaluate the thermal comfort of occupants and the risk of overheating in naturally conditioned buildings before and after renovation following two impact assessment methods: real-time data-based and simulation-based. The real-time data-based method compared the indoor conditions of a dwelling with a conventionally retrofitted roof to one with a double-skin roof, indicating that the dynamic roof maintains a ceiling temperature lower than the air temperature throughout the summer while the conventional roof acts as a heating surface. On the other side, the simulation-based method compared the observed indoor conditions with a double-skin roof enabled during 2023 to the initial stage and a double-skin roof disabled scenario, using calibrated building energy models. The natural cooling roof solution almost eliminates the overheating events, leading to a reduction of 94.1% and 76.9% in discomfort degree-hours compared to the initial stage according to the ASHRAE adaptative and Fanger comfort models, respectively. Additionally, the results indicate that conventional retrofits can increase the risk of overheating when a cooling system is not considered. Integrating a cool roof solution requires only an extra implementation cost of 31€/m2 compared to a conventional solution, having an operational cost that represents less than 3% of the minimum monthly income in the social housing district.

Non‐standard employment, low standard of living? The role of labour market and social policy measures in preventing material deprivation in different employment trajectories in Europe

AbstractWhile the poverty risks of non‐standard employment have been explored extensively, this study focuses on the role of activation‐oriented social policy in alleviating material deprivation for persons with non‐standard employment histories. Using EU‐SILC data, individuals over a four‐year period were analysed. I focused on substantial earners and distinguished between six non‐standard employment histories expected to benefit from activation measures. Multi‐level models revealed that compared to standard employment histories, all non‐standard employment histories had higher material deprivation risks but to substantially different extents. At the macro level, participation in activation measures, expenditures in formal childcare and minimum income protection reduced material deprivation. Participation in training can be interpreted as an equaliser, as the deprivation gap between standard and most non‐standard employment history types diminished. As expenditure‐ and participation‐based measures differed significantly, evaluating the success of activation strategies in reducing inequalities and alleviating poverty highly depends on the measurement of activation.

More than survival. The meanings of cash transfers for the poor

PurposeThis article challenges the prevailing view that a minimum income for the poor is only relevant to basic needs. It contributes to the discussion on the meanings of money by specifically focusing on the Italian Citizenship Income scheme as a case study.Design/methodology/approachA qualitative research design was developed and implemented in four regions of northern Italy. The analysis is based on 131 in-depth interviews with minimum income recipients.FindingsThe empirical analysis shows that money transfer has various meanings. Four dimensions are identified: functional, relational, protective, and emancipatory. The first two are connected to spending, while the latter two are related to self-identity. Although the four dimensions may overlap and coexist in the daily lives of minimum income beneficiaries, they are distinguished for analytical purposes.Originality/valueThe article presents a comprehensive analysis of the multiple meanings that minimum income can have for beneficiaries; meanings which are often not explicitly addressed in social policy studies. It goes beyond the equally important consideration of material needs by adding other meaningful aspects. This approach makes a different way of looking at cash transfers possible, and it provides elements useful for the design and analysis of minimum income policies.

Minimum wage and income inequality among the migrant population in China

ABSTRACT Have frequently adjusted minimum wages slowed the widening of income inequality in China? To answer this question, this study examines the impact of minimum wages on income inequality among the migrant population using data from the China Migrants Dynamics Survey (CMDS) for 2011–2018 and data on city-level minimum wages over the same period. The research findings indicate that the minimum wage significantly reduces income inequality within China’s migrant population. Importantly, the conclusion remains robust after employing rigorous analytical methods, such as instrumental variable analysis, replacement of the explained variable, and provincial-level data regression analysis. Moreover, the mechanism analysis reveals that the minimum wage contributes to reducing income inequality within the migrant population by raising the income of low-income groups without causing unemployment. The extent of this impact is closely related to the implementation of regional minimum wage policies. Additionally, the heterogeneity results show that minimum wage has a more pronounced effect on reducing income inequality among formally employed individuals and those working in the state-owned sector than in the informal employment and non-state-owned sectors. Overall, these findings provide valuable insights for policymakers to further optimize the minimum wage system in China to promote common prosperity.

Minimum supporting price (MSP): A boon or bane

MSP is affixed price paid by government of India to farmers wherever they procure a particular crop. It is fixed prior to the sowing season to encourage higher investment and production of agricultural commodities. The MSP is designed to ensure that farmers receive a minimum income for their produce, helping to stabilize prices and protect farmers from market fluctuations or price drops due to oversupply or other factors. It also provides an incentive for farmers to grow certain crops, as the government assures a baseline market for them. Therefore, present study was planned to assess the knowledge, determining the impact and expectation of farmer towards MSP policy in the village of Haryana state. Study was conducted on 30 farmers to assess the knowledge, determining the impact and expectation of farmer towards MSP policy. The survey’s findings highlight the several significant outcomes and causes for farmers’ discontent with the MSP rates announcement pattern. All farmers (100%) agreed that MSP should be revised according to climatic changes. Majority of the farmers were highly dissatisfied with the rates announced by government over MSP listed crops. Farmers thought that these prices did not leads to meet their regular needs. The government should focus on improving policy and at the same time, agricultural education should be incorporated into the curricula of schools as well as higher level of studies.

Constitutionalising the Social Minimum in Greece: The Enduring Legacy of the Euro-crisis on the Social Constitution

Constitutionalisation of the decent standard of living in Greece – Euro-crisis and constitutional change – Financial assistance conditionality and minimum income policy – Decent standard of living in crisis jurisprudence

Global Minimum Taxation: A Strategic Approach for Developing Countries

The world has seemingly embraced the altruistic idea of ensuring a minimum level of corporate income taxation worldwide, consolidating a “benefits for all” narrative by which both developed and developing countries apparently gain. However, this altruistic narrative proves to be quite unrealistic for many developing countries. As argued in this article, the perceived benefits of a global minimum corporate income tax in developing countries rest exclusively upon three unconvincing premises. These include the assumption that all corporate income tax incentives provided by developing countries are equally inefficient, the idea that all developing countries can seamlessly transition from corporate income tax competition to alternative forms of tax and non-tax competition, and most notably, the notion that supporting or opposing a global minimum corporate income tax could either boost or diminish tax revenue for developing countries. This article urges a departure from these premises and elaborates upon three strategic recommendations for developing countries, which include: first, viewing a global minimum corporate income tax as a concept divorced from the assumption of revenue gain or loss; second, using the global minimum corporate income tax as an opportunity to reassess their tax and non-tax incentives, encompassing alternative competitive strategies; and third, striving for simplicity and ease of administration in designing and implementing a minimum tax approach. In doing so, developing countries could perhaps find an opportunity to refine their general action plan to attract foreign direct investment (FDI) more effectively while they still try to ride the wave of minimum global corporate income taxation that the world seems to be in.

Madam Yellen is right about minimum wage policies: evidence from millions of sole proprietors

During her nomination hearing, Janet Yellen defended the benefits of a higher minimum wage (Question 66 and follow-up). This study analyzes the impact of minimum wage policies on the profitability of sole proprietors by using a dataset of 430 million reported net incomes with the IRS from 2004 to 2018. Three methods are used to examine the relationship between minimum wage increases and net income for sole proprietors: A panel regression framework that includes all counties, comparing contiguous border county-pairs, and a difference-in-differences approach. We find that minimum wage hikes are associated with a higher net income for sole proprietors, with estimated elasticity between 0.15 and 0.2.

Disruptive (dis)engagement: platformisation as a global social policy

Global digital platforms have become important actors for economy and work with social policy consequences. This article analyses strategies and actions of global digital platforms from the perspective of how and what kind of global social policy these represent. It draws from analysis of how platform company strategic approaches relate to rights, regulation, and redistribution, and then using abductive reasoning and mixed methods empirical case study in Europe, articulate challenges to future global social policy. It examines what priorities of platform companies imply to global social policy and identifies five political and strategic elements of importance for global social policy: (1) denial or avoidance of employer status, (2) identifying as a “tech company providing services”, (3) focus on private social insurance in contrast to statutory social security, (4) addressing social security as a market-based service through voluntary partnerships, and (5) investor driven business model and global engagement. Drawing from theoretical and empirical data, the article further examines potential countermeasures and solutions, which could be of relevance at different levels of governance. It concludes that social policy impacts of platform economy are more related to the business model than technology. Platform economy business models currently support upward redistribution and avoidance of regulatory measures to address minimum income, social protection, and workers’ rights, yet platform economy is data rich and also could provide scope for government and regulatory action.

Survival Time Disparities after Palliative Care Use Among Low-Income Patients on Social Welfare Programs: A Retrospective Cohort Study.

Relieving the total pain of patients with cancer and supporting their well-being throughout their lives are important roles of palliative and supportive care. Poverty may inhibit patients from receiving dignified end-of-life care; however, using social welfare services may reduce its impact on patients' end-of-life experiences. Nevertheless, no study has investigated which social welfare service could lead to favorable end-of-life experiences for patients living in poverty. This study aimed to describe the characteristics of users of palliative care among low-income patients and examine the difference in survival time among patients with cancer on social welfare services in a single center in Kyoto, Japan. We conducted a retrospective cohort study. We included 220 patients using Public Assistance (PA: aid minimum income and medical/long-term care), Free/Low-Cost Medical Care (FLCMC: aid only medical care), and nonwelfare-users who newly received palliative care in 2021. We calculated patients' survival time from the initiation of palliative care to death. In addition, we identified patients who experienced home death. Compared with nonusers, FLCMC beneficiaries had shorter survival times (adjusted hazard ratio [aHR] 2.05, 95% confidence interval [CI] 0.80-5.22). No difference was observed among PA beneficiaries (aHR 1.19, 95% CI 0.49-2.87). No home death was observed among welfare service recipients. Social welfare benefits only for medical expenses may not sufficiently support dignified end-of-life care for low-income patients. Further studies are required to examine the robustness of this study considering various bio-psycho-social factors that can influence these findings, to support low-income patients with cancer on social welfare services.

How not to announce changes to the Immigration Rules

On 4 December, the Home Secretary unveiled a new package of measures to reduce immigration – a matter of great interest to faith communities, given that some of them depend fairly heavily on clergy and lay-workers from overseas to sustain their pastoral ministries. One of the elements in his statement to the Commons was a decision to ‘increase the skilled worker earnings threshold by a third to £38,700 from next spring, in line with the median full-time wage for those kinds of jobs’ and to raise the minimum income for family visas ‘to the same threshold as the minimum salary threshold for skilled workers, which is £38,700’.1