Romania Guaranteed Minimum Income Program

In Romania, a qualitative review of the Guaranteed Minimum Income Program (Birks Sinclair C Associates 2004) finds little evidence of an adverse impact on labor force participation. Two design elements are suspected to have mitigated the work disincentives. One is the work requirements applied to all able-bodied beneficiaries. The other is an exit threshold that is set higher than the eligibility threshold. The evaluator considered that because there is a small bonus for employment, there may be a small positive impact on participation compared with more traditional systems of aid (Birks Sinclair Associates 2004, p. 27). 

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