The Erosion of the Portuguese Minimum Income Protection Scheme

Abstract

While minimum income protection (MIP) is central on a European level, as demonstrated by the European Pillar of Social Rights, national policies display huge variations, reflecting different domestic guidelines and political and socio‐economic dynamics. The literature has shown that the adequacy of MIPs and their role in social protection systems varies significantly, not only between countries but also over time. However, as most studies adopt large-N comparative perspectives, it is not possible to identify whether policy changes affect the programs' generosity or how. This article bridges this gap by taking Portugal as a specific case study and examining the degree of generosity of its MIP - the Guaranteed Minimum Income (GMI), later renamed Social Insertion Income (SII). GMI/SII has outlasted other schemes and is unique within the Southern European welfare regime, partly because, since it started, it has undergone several transformations, which have impacted its ability to provide adequate coverage. The article applies a hypothetical simulation approach to assess the impact of policy change on the generosity of GMI/SII over time. The results demonstrate that alterations introduced over time have had negative effects on different aspects of the adequacy of GMI/SII - and to varying degrees.