Italy withdrew its citizenship income in 2023, and its unemployment is at historic lows. The consulted economists warn that the withdrawal of aid does not solely explain the decline.
According to Canal Extremadura, the debate about the effects of subsidies on job searching has reopened following the withdrawal of citizenship income in Italy, a benefit comparable to the Spanish Minimum Vital Income. Three years after the withdrawal began, the country is recording unemployment rates at historic lows, and analysts and political agents are studying the relationship between the loss of aid and the activation of the labour market.
Official Italian figures indicate that in July 2023, the income covered 1,070,000 households. By the end of 2024, only 60% of those families had accessed another public benefit, 25% did not submit any application, and the remaining 15% received a negative response. Furthermore, 26% of the beneficiary households stated that, after the removal, at least one of their members had found work.
In Spain, the Minimum Vital Income has cumulatively reached nearly 4 million people. It currently covers 2,800,000 people integrated into 905,000 households, and in September it accounted for 391,000 more beneficiaries than in the same month of 2025.
When asked whether eliminating the benefit in Spain would replicate the drop in unemployment observed in Italy, the consulted economic experts urge caution and dismiss single-cause explanations. Economist Ana Romero points out that the reform has contributed to encouraging entry into the labour market, although alongside other factors:
“It is combined with other factors that have been the evolution of industry, the evolution of the services sector, and the general economic situation.”
Romero also highlights the difference between the aid and the salary a person would receive when working. If the wage is low and barely exceeds the benefit, she explains, the decision to enter employment loses its appeal.
Analysts also remind that these benefits remain a necessary tool to curb social exclusion in the most vulnerable households, especially in communities with lower per capita income. Romero proposes strengthening training for job searching and greater control of the aid, without giving up on solidarity mechanisms.
You may also like
