Poverty dynamics and social transfers in Italy in the early 1990s

Poverty dynamics and the ability of the Italian welfare system to reduce poverty are investigated by using the 1991-1995 Panel of the Bank of Italy's Survey of Household Income and Wealth. Households most exposed to poverty live in the South, have a larger size, a young or female head, with a low educational level or a discontinuous work profile. The dynamic and static effectiveness (in terms of poverty reduction) of social transfers is analysed, as well as the factors affecting exclusion from the safety net. A closer look is taken at the effects of a minimum income guarantee in its experimental phase in Italy.