The Role of a Minimum Income Scheme on Happiness among Italian Household Beneficiaries

Abstract This study investigated whether the introduction of a form of minimum income scheme targeted to poor and socially excluded households in Italy (i.e., Citizenship Income or Reddito di Cittadinanza) increased subjective well-being among household beneficiaries. In the current research, data from the last two waves (2016, before the adoption of Citizenship Income, and 2021, after its adoption) of the Survey on Household Income and Wealth of the Bank of Italy were used. Specifically, data from 2,283 participants who were interviewed in both waves were included in the analysis. Participants were asked to report their overall happiness and whether or not their household received the Citizenship Income. A mixed ANOVA revealed that, after controlling for relevant covariates, happiness improved following the adoption of Citizenship Income among beneficiaries. However, this increase was less marked or absent among non-beneficiaries. A difference-in-difference framework combined with a kernel-based propensity score matching was used to increase the robustness of the estimation of causal effects. This additional analysis confirmed that Citizenship Income beneficiaries reported a statistically significant increase in overall happiness in comparison to non-beneficiaries. Overall, the findings demonstrate that income schemes have the potential to increase subjective well-being among household beneficiaries.