A study on the impact of “Reddito di Cittadinanza" using a multivariate linear mixed model

A Multivariate Linear Mixed Model (MLMM), a Multivariate Spatial Linear Mixed Model (Spatial MLMM) with Time-Varying Fixed-Effects and a Multivariate Spatial State Space Linear Mixed Model (Spatial State Space MLMM) are used to analyze the impact of the “Reddito di Cittadinanza” (RdC) on the share of poverty, the Income inequality, and the average per capita income, treated as target variables. The analysis covers the years preceding the introduction of the social policy measure and those following it. Although we did not find a statistically significant impact of RdC at the global Italian level on these variables, at the regional level - and especially for the Southern Italy Regions and the Islands - the analysis shows an effective reduction in the share of poverty in these Regions.