Effectiveness of Minimum Income Schemes in the reduction of poverty

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Presentation transcript:

Effectiveness of Minimum Income Schemes in the reduction of poverty Lessons for Spain Jonathan Bradshaw Madrid 6 October 2016

Not easy to learn lessons from abroad Very different labour markets. Unemployment in the UK is currently 4.9% and the employment rate is 74.4%. Youth unemployment is only 13.5%. Spain has no child benefit. MIS better for pensioners. Spain has no housing benefit. Total spending low Spending on children has declined over the crisis but not for pensioners Child poverty and family deprivation increased in Spain after the crisis Child poverty much higher than pensioner poverty

Spending on old and children 2008-2013 (euros purchasing power parity per inhabitant).

Changes in spending on old and families with children 2008-2013 (euros purchasing power parity per inhabitant).

Increase in child poverty rates threshold anchored at 2005 (Eurostat database)

% households with children lacking 3 or more deprivation items (Eurostat database)

Pensioner and child poverty rate ranked by % difference

Transfers Focus on families with children OECD tax/ben EU SILC Very low for working families

Contribution of wages and benefits to net disposable income couple plus 2 one earner 50% average earnings 2014 OECD Tax Ben

Components of net income lone parent plus two children on half average earnings 2014, OECD Tax/Ben

Total net income couple plus two children on the minimum wage as a proportion of the poverty threshold in 2012.

Net income (from OECD Tax/Ben) of a lone parent with two children on social assistance as a % of the EU-SILC equivalised poverty threshold

Child poverty rates for lone parents and couples (%) Child poverty rates for lone parents and couples (%). Source: EU-SILC (cross-sectional; version 2013). Base: children under 18 years old. Child weights used. Ranked by percentage reduction.

Child poverty rates of lone parents before and after social transfers Child poverty rates of lone parents before and after social transfers. Source: EU-SILC (cross-sectional; version 2013). Base: children under 18 years old. Child weights used. Ranked by percentage reduction.

Child poverty gaps of lone parents before and after social transfers Child poverty gaps of lone parents before and after social transfers. EU-SILC (cross-sectional; version 2013). Base: children under 18 years old. Child weights used. Ranked by percentage reduction.

Reduction in poverty rates by reduction in poverty gaps EU-SILC 2013.