POOR SUPPORT FOR POOR PEOPLE? ASSESSING THE IMPACTS OF IMPROVING ADEQUACY IN MINIMUM INCOME SCHEME IN SLOVAKIA

The paper conceptualizes and quantifies effects of improving adequacy in the minimum income scheme in Slovakia. It builds on previous findings on its significant shortcomings and discusses them in relation to the ideas of activation, active inclusion and social investments. The core of the paper is based on microsimulation of effects of proposed reform scenarios. Three major changes of minimum income scheme’s parameters are explored: setting new amounts of minimum income benefit, introducing guaranteed amounts in the minimum income scheme, and change of equivalence scale. The effects are identified in terms of poverty rate, poverty gap, size of target population and budget requirements. Results serve as a basis for discussion on future reforms of the minimum income scheme in Slovakia.