CSB MIPI: the Centre for Social Policy Minimum Income Protection Indicator dataset. Sarah Marchal INGRID seminar - April 7th, 2014

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1 CSB MIPI: the Centre for Social Policy Minimum Income Protection Indicator dataset Sarah Marchal INGRID seminar - April 7th, 2014

2 Aim present valid and detailed information on the level and composition of minimum income protection packages in Europe and the United States Adequacy of MIP and trends over time (Marx and Nelson, 2013; Van Mechelen and Marchal, 2013; Goedemé, 2013) Changing welfare states (Cantillon and Van Mechelen, 2011, 2014) Effectiveness of MIP (Vandenbroucke et al., 2013; Chzhen and Bradshaw, 2012) Policy options (Marx and Marchal, 2013; Marchal and Van Mechelen, 2014) 2

2013; Goedemé, 2013) Changing welfare states (Cantillon and Van Mechelen, 2011, 2014) Effectiveness of MIP

3 Content: MIP arrangements for three risk types workers minimum wage able-bodied of working age, no access to social insurance social assistance elderly, no access to social insurance minimum income guarantee elderly Reference cases: 2-earner and 1-earner average wage 3

assistance elderly, no access to social insurance minimum income

4 Period and countries covered Content Time span Time series on gross incomes Standard simulations for five model families Single and couple w/wo 2 children, single w young child Background information - Assumptions - Activation policy - Policy changes 1992*, 2001, 2009, *, 2001, 2009, , Countries covered: EU27 (excl. CY, MT) + NO + US NEB/NJ/TEX Only EU15 + NO for

information - Assumptions - Activation policy - Policy changes 1992*, 2001, 2009, 2012-1992*, 2001,

5 Approach Network of independent experts Participated in similar studies (Bradshaw and Finch, 2002) and/or contribute to EUROMOD delivers simulated net income and income components based on detailed instructions. Check: Questionnaire probes into additional assumptions and choices Validation by central team 5

net income and income components based on detailed instructions.

6 Central assumptions and principles Annualized incomes (incl. holiday payments) Rights-based benefits Situation on January 1st Disregard time limits (except for heating allowance) Select same large city/region if necessary Minimum income situation Comparability over time 6

Disregard time limits (except for heating allowance) Select same

7 Central assumptions and principles - ctd Type Model families Housing allowance Child care costs Assumption Age - Children: 2/7/14 years - Adult: 35/pension age No income other than benefits No social insurance Single/married/divorced Tenants Most common dwelling for low income families: social or private 1/2/3 bedrooms, according to family size Two scenarios: -2/3 of median rent (EU SILC) - median rent (EU SILC) formal full-employment-day, full-week, regulated child care service 7

Tenants Most common dwelling for low income families: social or private 1/2/3 bedrooms, according to family size Two

8 Country-specific assumptions Model family No minimum wage Housing allowance Heating allowance Employee SI contributions Child care costs Type of additional necessary assumption Lone mother or lone father Low-paid economic sector Size of the dwelling, building year, Most common way of heating Number of cold days White- or blue-collar, civil servant most commonly used formal full-employment-day, fullweek, regulated child care service Also: alternatives to the EU SILC based rent estimates for some countries; status of the non-employed spouse in one-earner model families 8

heating Number of cold days White- or blue-collar, civil servant most commonly used formal full-employment-day, fullweek, regulated child care

9 Cross-country comparability Not all income situations relevant in each country Potential trade-off minimum income situation vs. fewer additional assumptions Regional or local authority: large city/region not necessarily representative E.g. Catalonia and Milan relatively generous, Vienna around average 9

fewer additional assumptions Regional or local authority: large city/region

10 Cross-temporal comparability No information on all income components over time in each country e.g. heating allowance, child care costs, holiday payments 10

11 Relevant issues for the future simulation tool Degree of country-specific assumptions Standard options and/or clarification of minimum income situation principle potential trade-off additional assumptions relevance of the model family type for the specific country Large impact of housing cost assumptions Trends in housing allowances or in housing costs Rent or housing costs Apt tenure status 11

assumptions relevance of the model family type for the specific country Large impact of housing

12 Comparison 1200 Net income package for a single MIP beneficiary in 2009 for selected countries, in PPS BE CZ DE EE FI FR HU IE LT LU NL PL PT RO SI SK UK MIP (MIPI) MIP (SaMIP) MIP (OECD) housing allowance (MIPI) housing allowance (SaMIP) housing allowance (OECD) 12

HU IE LT LU NL PL PT RO SI SK UK MIP (MIPI) MIP (SaMIP) MIP (OECD)

RECENT TRENDS IN MINIMUM INCOME PROTECTION FOR EUROPE S ELDERLY. Tim Goedemé GINI DISCUSSION PAPER 27 FEBRUARY 2012 GROWING INEQUALITIES IMPACTS

RECENT TRENDS IN MINIMUM INCOME PROTECTION FOR EUROPE S ELDERLY Tim Goedemé GINI DISCUSSION PAPER 27 FEBRUARY 2012 GROWING INEQUALITIES IMPACTS Acknowledgement To be published with the title Minimum income