The incentive for the use of the minimum vital income (IMV), which was launched in 2023, “does not work.” This was completed by an independent body for financial responsibility (Airef) in its fourth annual analysis of the minimum state revenue against poverty. This tool, launched to promote employment between the advantages of IMV, does not achieve its goal in accordance with the study of the institution, since reducing the probability of work before and after its implementation by 12%.
The incentive for employment allows the beneficiaries of IMV to work and not reduce help, yes, during the first year, and whenever he assumed an increase in wage income. The mechanism, quite complex, is used as Officio on social security and allows, during its reliability, to increase the income of the household under consideration by increasing wages and maintaining the minimum vital income.
Kristina Herrero, Airef President, and Jose Maria Kasado, director of the agency’s assessment, presented the main results of a new annual study of social security, which collects “achievements” in the coverage of assistance as a minimum vital income and from a child from 19% to 23%. Nevertheless, the institution indicates that there are many more people entitled to help that do not receive it (the call No more) that are shown in 55% in the case of IMV and 72% in AIDS.
Airef warns that several “structural problems”, already discovered by the agency in assessing, have been preserved from the moment of its first analysis. For example, a barrier of access to the help of “unity of coexistence”, a complex criterion that does not exist for any other administration procedure and which should demonstrate the advantages that are especially vulnerable people. Airef also confirmed the need to use later income criteria to adapt to the current situation of families and reduced profitability required by social security in annual reviews.
This does not facilitate the probability of work
As a novelty, this year Airef dwelled on the influence of IMV on the insertion of labor and the study of the efficiency of incentives for employment. The fiscal authority calculates the negative impact of the help of 12% on the probability of work, which, according to estimates, compared the insert of labor of IMV beneficiaries and other people of limited resources (10% with less income) that do not perceive help. This discourages to work more in certain groups, such as families with one parent (-19%), 30-year-old young people (-29%), and benefits with greater benefits (-21%).
As for the magnitude of these data, in Airf they are not pronounced about whether the data is high or low, and indicate that they are formulated in the framework of what the economic literature indicates this type of advantages, which usually has a certain negative impact on employment. The study emphasizes that some positive IMV effects are also found at the workplace, for example, an increase in the likelihood of an indefinite contract. Kristina Errero explained that this assistance in guaranteeing income allows the beneficiaries to reject some more unreliable proposals about work, allows you to get more selective labor searches, with greater stability and access capabilities for professional re -calorification.
The most decisive analysis is that this negative detected effect does not decrease after the implementation of the IMV incentive launched in 2023. When analyzing the first year of work, AIRF warns that data on a decrease in the probability of work do not change, which makes doubt about the effectiveness of the tool.
In the Ministry of Social Security, aimed at the Socialist Elma Saiz, they believe that “the assessment of the use of IMV is early, because only data from the first year of application (2023) are available.” “It would be convenient to wait for additional data, since the mechanism will be more consolidated and better known among the beneficiaries to conduct a more reliable assessment,” they answer the ministry.
“Problems with the design”: people do not know that they perceive this
Christina Errero provided that the incentive for employment entered into force for a short time, but, nevertheless, in the air they believe that the lack of detected efficiency is due to several “problems in its departure”, therefore, the institution proposes a “complete reformulation” of measurement.
Among the discovered problems, Jose Maria Kasado emphasized his complete lack of visibility, since IMV benefits do not know what they are levying from a manual for employment, which prevents them from knowing advantages ”from a measure or an insert of labor. Kasado emphasized that not a single community comes from the ministry, which is simply applied to rear -time residence in annual reviews conducted in social services.
Christina Herrero also does not have a direct effect that Christina Errero emphasized, which means that families do not notice the difference between work and not performing it or what it involves collecting benefits, when it should be its goal, the incentive not to feed the so -called “poverty trap”. Another drawback is that the “no guaranteed duration” of the incentive, since only the first year is used, and from the second will only be supported in case of increased income again and in conditions that are not transparent to citizens.
Therefore, Airef proposes to “completely reformulate the incentive to employment with a new design, which is visible for potential beneficiaries, transparent in its duration and is modulated in accordance with the time of inclusion of labor and the intensity of the day.” To give an example, the institution emphasizes the different approach of a new complement related to unemployment subsidies, which, although it is very bulky, corresponds to some of these recommendations, Errero stands out.
“We do not see the appropriate for harmonizing the design of the incentive for employment by supplementing support for employment (CAE), since it has recently been launched, it has not yet been evaluated, and the unemployment subsidy is aimed at people who previously worked, with a different profile than IMV,” Airf’s proposal to the Airf proposal.
