6 October 2021

The impact of the Minimum Income in the regions of Spain

The Ingreso Mínimo Vital (IMV), Minimum Income Scheme in Spain, aims to guarantee a minimum level of income for households living in extreme poverty. To this end, the IMV defines a poverty line or threshold based on the size and composition characteristics of households. This line establishes the amount of money that, according to the Ministry of Inclusion, Social Security and Migration, a person needs to stop being poor. The following sheets present an analysis of the coverage offered by the IMV in each Autonomous Community. For this purpose, the equivalence between the amount of IMV established for each household and the extreme poverty line according to the international standard of each Autonomous Community is shown, based on the income of its population. The microdata from The Spanish Survey of Living Conditions (Spanish SILC Survey) of the INE (Spanish National Statistics Institute) for the year 2019 have been used for the preparation of these files.
    23 March 2021
    ISEAK Working Paper

    The long-lasting scar of bad jobs in the Spanish labour market

    Most young Spaniards start their working lives with low wages and highly unstable jobs. Many of them progressively improve their working conditions and move towards better jobs. Yet a relevant fraction get trapped into those low-quality jobs. We refer to this phenomenon as the scar of bad jobs. The purpose of this paper is to analyse the extent and nature of the scar, which helps learn about the hysteresis of bad jobs in Spain. To do so, we use longitudinal administrative records and compute an index to measure the quality of jobs. This is constructed by combining data on labour earnings, number of hours worked and employment rotation. By observing individuals not only at the start of their career, but also five and ten years later, we find that a bad job at the beginning is an important predictor of a bad job five years after, particularly if a bad job stems from working few hours. Additionally, those who escape from bad jobs in the first five years are unlikely to be trapped into them in the long run. Interestingly, the depth of the scar varies along the economic cycle. In particular, the Great Recession severely impacted the future careers of entrants, compared to the pre-crisis workers. Lastly, we identify that women, younger entrants and hospitality workers are more prone to hold their bad jobs in the medium and long term, and hence to be relegated to the lower tail of the income distribution.