Minimum income as an instrument to fight against poverty. The case of Valencian region

Recently, the Valencian Community has reformed the minimum income, establishing the so-called Valencian Inclusion Income (VII). In this work we performed an evaluation of this program, using microsimulation techniques from microdata provided by the Valencian administration.
A description of the new program is made regarding the previous Guaranteed Citizenship Income (GCI) that has shown problems of exhaustion, pointing out the most relevant differences.
From the existing data, we calculate the estimated budgetary cost of the VII and the effects of this program in terms of poverty and inequality. Although spending will increase with respect to the old GCI, the changes in the design will imply very important improvements in terms of poverty and inequality.