Level of Basic Income Provision Determined Through a Household Budget Survey

By Noemi Pena Miguel, Joseba Inaki De La Pena and Ana Fernandez-Sainz.

Published by The International Journal of Interdisciplinary Social and Community Studies

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The main advances in models of compulsory social security have taken place in social and economical conflictive situations. In these situations, the first pillar schemes have been developed (International Labour Organization, ILO). In 2005, the World Bank proposed to design an assignment for every citizen, paid annually according to their own situation, taking into account also both demographic and economic situation of the country. This economic assignment is according to the concept of basic social assistance benefits understood as an initial and basic social protection system to guarantee vital expenses of all citizens. This paper analyses the factors that determine the amount of expenses in essential needs of individuals. Thus, we have used the Spanish Household Budget Survey (2010) and analysed the factors (number of family members, number of dependents, region of residence, household head features, etc.) that determine essential needs applying a quantile regression. The regression result is then used to provide a basic income (BI) proposal for each household type. The aim of this study is to determine the amount of basic social assistance benefits which could protect citizens from social risks and resulting insecurities covering essential needs using those factors. Therefore, a social security benefit as basic social assistance one would be a powerful tool against poverty and inequality. As its main purpose is to meet the essential needs of individuals, then it could be used as a measure to guarantee a basic level of social and economic security for all members of society of the current minimum income grants and other benefits.

Keywords: Basic Social Assistance Benefit, Quantile Regression, Basic Social Protection, Basic Needs

The International Journal of Interdisciplinary Social and Community Studies, Volume 9, Issue 1, December 2014, pp.1-20. Article: Print (Spiral Bound). Article: Electronic (PDF File; 1.254MB).

Prof. Noemi Pena Miguel

Professor, Department of Financial Economics, University of the Basque Country, Spain

Professor in the Department of Financial Economics I at the University of the Basque Country (Universidad del País Vasco/Euskal Herriko Unibertsitatea –UPV/EHU-). She has worked as a Financial Administration Manager in companies in the service sector specializing in promoting social welfare. She was the professor responsible for Mathematics and Introduction to Statistics at the European Business School (ESEUNE) and the professor responsible for Corporate Finance at the European Business School (ESEUNE) in the Master in Business Administration (MBA) program.

Dr Joseba Inaki De La Pena

Professor, Department of Financial Economics I, University of the Basque Country, Spain

Holder of a doctorate in Economics and Business Studies and insurance actuary. Tenured professor for over twenty years at the University of the Basque Country (Universidad del País Vasco/Euskal Herriko Unibertsitatea–UPV/EHU-) in the Department of Financial Economics I. He has been Deputy Director of the Institutional Assessment Service at the University of the Basque Country, within the Office of the Vice-Rector for Teaching Innovation. He is currently an external assessor of the Spanish National Agency for Quality Assessment and Accreditation (ANECA) for degree evaluation programs (PEI), quality guarantee systems (AUDIT), and the excellence rating for doctoral programs. He is an external assessor for the Castile and León University System Quality Agency (ACSUCyL) and an accredited assessor of the European Foundation for Quality Management (EFQM). He has published a number of articles on degree evaluation and accreditation. He conducts his teaching and research activity as a member of the Faculty of Economics and Business Studies in Bilbao, on welfare, social security, and finance, and has published papers and books on welfare within his area of study.

Prof. Ana Fernandez-Sainz

Department of Applied Economics III, University of the Basque Country, Spain

Ana Fernández-Sainz: Holder of a doctorate in Economics (with a master’s degree in Public Economics), expert on quality, and Full Professor of Econometrics in the Department of Applied Economics III (Econometrics and Statistics) at the University of the Basque Country (Universidad del País Vasco/Euskal Herriko Unibertsitatea–UPV/EHU-). She has published research papers on various areas of the economy in top-ranked international journals (including Econometric Reviews, Economic Letters, Journal of Applied Econometrics, Applied Stochastic Models and Data Analysis, Oxford Bulletin of Economics and Statistics, Computational Statistics, Transportation Research, Estudios de Economía, Journal of Income Distribution and Journal of Labor Research, among others) and Spanish journals (Osasunkaria, Revista Vasca de Economía, Cuadernos Aragoneses de Economía), as well as articles for general readers, books, and book chapters.