× Homepage Programme Participants Location Social Events Presentation Instructions Practical Info

AIEL 2025


40th Conference of the Italian Association of Labour Economics

Department of Economics, Management and Statistics (DEMS)
University of Milano-Bicocca

Milan, 18-20 September 2025

Guaranteed Minimum Income and Fertility


Presenter

Giuseppe Pio Dachille (INPS)


Coauthors

Maria De Paola and Roberto Nisticò


Abstract

This paper examines the impact of Italy’s “Reddito di Cittadinanza” (RdC), a guaranteed minimum income program introduced in 2019, on fertility. Using administrative data from the Italian Social Security Institute and a Fuzzy Regression Discontinuity Design, we uncover regionally heterogeneous effects. While no significant impact is observed in the Centre-North, RdC recipients in the South are 1.5 percentage points more likely to have a child within two years compared to non-recipients—a 18% increase. Additionally, we find no significant effect of RdC on labor supply in the South, whereas beneficiaries in the Centre-North experience a 0.3-month reduction in work and a $260 decline in individual earnings over an eight-month period—a 17% and 19% decrease, respectively. These contrasting responses appear to be driven by more traditional gender norms and lower opportunity costs of childbearing in the South relative to the Centre-North.