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Talk:Labour market (COVID-19 monograph)

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{{ANENavegacionHermanos |anterior=[[Economic_indicators_and_productive_sectors|Economic indicators and productive sectors]] |siguiente=[[Public_finance_(COVID-19_monograph)|Public finance]] }}
[[File:Logo_Monografía.jpg|right|thumb|300px|Gráfico estadísticoStatistical graph: Evolution in the amount of workers affiliated to the Social Security System. 2019-2020. Spain.]]
Assessing the labour market becomes crucial when rating an economy, its dynamism, the social welfare and the income level of the population. The labour market is made up of people, some of whom offer their labour in exchange for a salary that enables them to live, and some of whom demand this labour to produce the goods they sell and are willing to pay these salaries in return.
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[[File:Logo_Monografía.jpg|left|thumb|300px|Map: Trabajadores afiliados a la Seguridad Workers affiliated to the Social según régimenSecurity System. 2018-2019. Spain.]]
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[[File:Logo_Monografía.jpg|left|thumb|300px|Map: Trabajadores afiliados a la Seguridad Workers affiliated to the Social en la primera ola de la pandemiaSecurity System during the first wave of the pandemic. 2019-2020. Spain. ]]
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</ul></div>This pattern continued towards the beginning of 2020, but was suddenly interrupted by the state of alarm on 14 March, which brought all ‘non-essential economic activities’ to a halt. This had a major impact on the amount of workers affiliated to the Social Security system. From 14 to 31 March, affiliations plummeted. The Social Security system lost 898,822 affiliated workers in just one month, of which 855,081 were affiliated to the General Scheme (equivalent to a drop of 5.63%) and 40,877 to the Special Scheme for Self-Employed Workers (equivalent to a reduction of 1.25%).
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<div><ul style="text-align: left; margin-bottom: 0>{{ANETextoAsociado48|titulo=EMPLOYMENT CONTRACTS|contenido=[[File:Logo_Monografía.jpg|right|thumb|300px|Map: Contratos de trabajo durante la pandemia. Employment contracts during the pandemic 2019-2020. Spain. ]]
The drop in the amount of workers affiliated to the Social Security system who had temporary contracts (-17.30%) was much sharper than amongst those with permanent contracts (-1.92%). However, new contracts were signed in all regions, most of them temporary, as shown on the map on Employment Contracts during the pandemic. This map depicts the amount of employment contracts -both temporary and permanent- registered in the National Public Employment Service throughout the first wave of the pandemic. The variation in the amount of new contracts signed in 2020 in relation to those signed in the same period in 2019 is shown on the choropleth. The downturn in the labour market explains why this variation was negative in all regions, although not to the same degree. New contracts fell the most in the Balearic Islands (Illes Balears) (-72.3%), followed by the Canary Islands (Canarias) and some regions in northern Spain, with a negative variation ranging from -50% to -60%. Andalusia (Andalucía), the Region of Valencia (Comunitat Valenciana), Aragón, Navarre (Navarra) and La Rioja registered slightly lower decreases, of -40% to -50%. Falls registered in Extremadura and Castile-La Mancha (Castilla-La Mancha) were around -30% to -40%. Only in the Region of Murcia (Región de Murcia) was the fall somewhat lower (-28.5%).}}
<ul style="text-align: left; margin-top: 0>{{ANETextoAsociado48|titulo=HOME OFFICE|contenido=[[File:Logo_Monografía.jpg|right|thumb|300px|MapaMap: Teletrabajo durante la pandemiaHome office during the pandemic. 2020. Spain. ]]
Many companies and public administrations could only continue their activity during lockdown in spring 2020 by allowing their employees to work from home. A previously scarcely used labour format became almost overnight a large-scale experiment to test the possibilities offered by this way of managing the production process. According to the Labour Force Survey, at least 20% of employees in Spain were in home office during this period.
Figures highlight significant differences by region and sex. From a spatial point of view, the Region of Madrid (Comunidad de Madrid) stands out, as over 30% of employees were in home office. This contrasts with the Canary Islands (Canarias), La Rioja, Navarre (Navarra) and the Region of Murcia (Región de Murcia) where only under 15% of employees worked from home. In terms of gender, more women than men were in home office in most of the regions, especially in Aragón, Extremadura and the town of Melilla.
{{ANETextoEpigrafe|epigrafe=Registered unemployment}}
[[File:Logo_Monografía.jpg|right|thumb|300px|Gráfico estadísticoStatistical graph: Evolución del paro registradoEvolution in registred unemployment. 2015-2020. Spain.]]One of the immediate effects of the health crisis on the labour market was that many people were unable to carry out the tasks they usually performed. Countless people saw their economic activity suspended by the economic shutdown following the state of alarm on 14 March, with exceptions only being made for activities that were considered ‘essential’. As restrictions were gradually loosened in May and June, some workers were able to return to work, yet many others were not. This second group included those whose companies made use of the exceptional measures put in place by the national government through the Coronavirus Job Retention Scheme (agreed upon by employers and unions and approved in Parliament), which allowed employers to reduce working hours and even suspend contracts. Also in this group were those unable to return to work, either because the company could not withstand the temporary shutdown and folded or because the company adjusted its workforce once economy opened again, what made some employees redundant.
[[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Paro registrado según sexo y edadRegistred unemployment by sex and age. 2018-2019. Spain.]][[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Paro registrado según sexo y edad durante la primera ola de la pandemiaRegistred unemployment by sex and age during the first wave of the pandemic. 2019-2020. Spain.]] Some of the workers who lost their jobs were classified as unemployed for statistical purposes (unemployed are considered those who do not have a job but are available to work and actively seeking employment). Others chose to leave the labour market and join the economically inactive population. The amount of people classified as unemployed depends on the requirements that shall be met to be considered as such. There are two statistical sources usually used to measure unemployment, i.e. ‘registered unemployment’ carried out by the National Public Employment Service, and ‘estimated unemployment according to the Labour Force Survey’, accomplished by the National Statistics Institute. These data are produced by two different institutions and have differing public purposes, i.e. the former aims at protecting jobs, whilst the latter is purely statistical. They provide different pieces of information and measure different concepts. Therefore, their figures differ.
Unemployment registered by the National Public Employment Service is an administrative statistic obtained from the register of job seekers, which excludes anyone not meeting the requirements to be included in this register. These data may only provide a limited analysis of the general trends followed by employment as they may not be used to calculate the unemployment rate and are based on a subjective classification of unemployed. Nevertheless, a general overview on the impact of the health crisis on employment may be inferred from these data.
The distribution of registered unemployed by sex and age did not change during this period. Women were the majority in all regions, and only around 8% of registered unemployed were under 25 years of age. Many unemployed registered as job seekers in order to receive the unemployment benefit they were entitled to, which is linked to the time they were employed in their previous jobs and paying contributions to the Social Security system. As a result, many young people in this group may have not registered as job seekers as they had not worked enough time to earn the right to this benefit.
[[File:Logo_Monografía.jpg|right|thumb|300px|MapaMap: Paro registrado por sectores económicosRegistred unemployment by economic sector. 2018-2019. Spain.]][[File:Logo_Monografía.jpg|right|thumb|300px|MapaMap: Paro registrado por sectores económicos durante la primera ola de la pandemia Registred unemployment by economic sector during the first wave of the pandemic. 2019-2020. Spain.]] Registered unemployment dropped in all regions in the period from March to June both in 2018 and 2019. The drop was less severe in Catalonia (Catalunya/Cataluña), the Region of Valencia (Comunitat Valenciana), the Region of Murcia (Región de Murcia), Andalusia (Andalucía), the Balearic Islands (Illes Balears) and the Canary Islands (Canarias). As this period comes before the summer high season for tourism, recruitment levels are positive, yet never as intense as those registered during the summer. However, the effects of the pandemic become evident when comparing these months in 2019 and 2020. Data for 2020 show a general rise in unemployment throughout Spain. The situation in the Balearic Islands (Illes Balears), where the fall in employment led to a 63% increase in registered unemployed, is particularly challenging. The closure of borders to international tourists and the state of alarm that limited mobility for domestic tourists led to a standstill of tourism, which plays a crucial role in economy in the Balearic Islands (Illes Balears).
Provincial differences in the variation in registered unemployed and in the incidence of unemployment, shown on the map on Registered unemployment by economic sector during the first wave of the pandemic, may be attributed to two types of factors. Firstly, pandemic-related factors, in terms of restrictions on mobility and the incidence of the disease. Secondly, the production-related factors that define the economy of each province.
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[[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Paro estimado según sexoEstimated unemployment by sex. 2019. Spain.]]
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[[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Paro estimado según sexo durante la primera ola de la pandemiaEstimated unemployment by sex during the first wave of the pandemic. 2020. Spain.]]
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</ul></div>For example, furloughed workers were not classified as unemployed –even though they were not working– as they continued to be linked to their company and received payments from the government to a large proportion of their salaries. Another example of the challenges involved in taking an accurate reading of these statistics is the situation affecting the over a million people who lost their jobs in the second quarter of the year. The vast majority of these could not be officially considered ‘unemployed’ as they could not actively seek employment during lockdown, which is a key requirement for the statistical definition of unemployment. Therefore, these workers were considered ‘inactive’, which meant that although the inactive population increased, conversely unemployed did not grow to the extent that may have been expected.
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[[File:Logo_Monografía.jpg|right|thumb|300px|MapaMap: Paro juvenil estimadoEstimated youth unemployment. 2019. Spain.]]
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[[File:Logo_Monografía.jpg|right|thumb|300px|MapaMap: Paro juvenil estimado durante la primera ola de la pandemiaEstimated youth unemployment during the first wave of the pandemic. 2020. Spain.]]
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{{ANETextoEpigrafe|epigrafe=Furlough Schemes}}
[[File:Logo_Monografía.jpg|right|thumb|300px|Gráfico estadísticoStatistical graph: Empresas en situación de ERTE según sector económico. 2020. España.]]The labour market began to feel rapidly the impact of the pandemic short after 14 March 2020. The public administrations quickly took hefty measures to lessen the effects of lockdown for both companies and workers. One of the main priorities of Royal Decree Law 8/2020 of 17 March, on extraordinary urgent measures to reduce the economic and social impact of COVID-19, was to protect the productive and social fabric so that it could resume normal activity as soon as possible. One of the most important and effective mechanisms was Coronavirus Job Retention Scheme, officially called ‘Temporary Employment Regulation Scheme’, which is a furlough-type instrument which already existed in Spanish regulation but was adapted to fit the new scenario. This instrument allowed companies to temporarily suspend an employment contract or reduce its working hours whilst keeping the employment relationship. Whilst this Scheme was in force, workers received a payment from the government to compensate for the total or partial loss of their salary. Two new furlough schemes were set, i.e. one due to force majeure and the other due to objective reasons. Both were intended to prevent lay-offs linked to uncertainty and the drop in activity caused by lockdown. The intensity and duration of the health crisis forced the public administrations to lengthen this mechanism on several occasions, to the extent that it was still in force in June 2021.
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[[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Empresas en situación de ERTECompanies using furlough schemes. 2020. Spain.]]
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[[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Población afectada por ERTEFurloughed workers. 2020. Spain.]]
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</ul></div>Data registered by the National Public Employment Service for the months of May and June 2020 show that Furlough Schemes were predominantly used in the service sector, particularly in commerce and the food and beverage services. To a lesser extent, Furlough Schemes were also used in professional and administrative services, education, sports, culture, social services, manufacturing and construction. Restrictions and limitations being loosened and then lifted after lockdown and the gradual return to ‘new normal life’ from May 2020, led in all cases to a drop in uptakes by June 2020.
{{ANETextoEpigrafe|epigrafe=Unemployment, poverty and social protection}}
[[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Beneficiarios de prestaciones de desempleo. 2019-2020. Spain.]][[File:Logo_Monografía.jpg|right|thumb|300px|MapaMap: Hogares sin ingresos. 2019-2020. Spain.]][[File:Logo_Monografía.jpg|right|thumb|300px|Gráfico estadísticoStatistical graph: Evolución de los hogares sin ingresos. 2005-2020. EspañaSpain.]][[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Hogares con todos sus miembros activos en paro. 2020. EspañaSpain. ]][[File:Logo_Monografía.jpg|right|thumb|300px|Gráfico estadísticoStatistical graph: Evolución de los hogares con todos sus miembros activos en paro. 2005-2020. España.]]The first estimates of the impact of the pandemic on economy in Europe confirm that poverty rate is increasing in many states. In spite of the emergency measures put in force by the governments, the current situation is breeding a rise in income disparities between states and reducing the social and territorial cohesion of the continent. States in the south, and Spain in particular, have fewer jobs that may be carried out using home office, yet those who may work from home tend to be more qualified and have higher salaries than in other central European states. In addition, fewer medium and low-skilled jobs were deemed as being ‘essential’ in southern European states, suggesting that the impact of the pandemic on lower-income households was more significant than in other states.
Comparando los meses de mayo de Comparing the months of May 2019 y mayo de and May 2020 se observa un notable aumento del número de prestaciones por desempleo en todo el territorio nacionalreveals a remarkable rise in the amount of people claiming unemployment benefits throughout Spain, en especial de las que forman parte de los ERTE COVID-19 especially by those affected by furloughs (ver ''[[:Archivo:Espana_Beneficiarios-de-prestaciones-de-desempleo_2019-2020_mapa_17873_spa.jpg|Beneficiarios de prestaciones por desempleo]]''see the map on Beneficiaries of unemployment benefits) destinadas a aliviar los efectos de las pérdidas de empleo sobre los ingresos familiares. Sin embargoHowever, se observan significativas diferencias en las tasas de cobertura autonómicas que miden la relación entre beneficiarios de prestaciones y número de parados registrados. Las prestaciones por desempleo aumentan su cobertura en las comunidades autónomas del norte y este peninsular significant differences may be observed in the regional coverage rates (Principado de Asturias, Galicia, Castilla y León, Comunidad de Madrid, País Vasco, Comunidad Foral de Navarra, Aragón, Cataluña y Comunitat Valencianasee the map on Coverage of unemployment benefits), mientras que la reducen en otraswhich measure the ratio of beneficiaries of unemployment benefits to unemployed. The coverage of unemployment benefits increased in the northern and eastern regions, situadas principalmente en el sur y el oestewhilst it reduced in some southern regions, como especially Extremadura y and Andalusia (Andalucía.[[Archivo:Espana_Cobertura-de-las-prestaciones-por-desempleo_2019-2020_mapa_17871_spa.jpg|left|thumb|300px|Mapa: Cobertura de las prestaciones por desempleo. 2019-2020. España. [//centrodedescargas.cnig.es/CentroDescargas/busquedaRedirigida.do?ruta=PUBLICACION_CNIG_DATOS_VARIOS/aneTematico/Espana_Cobertura-de-las-prestaciones-por-desempleo_2019-2020_mapa_17871_spa.pdf PDF]. [//centrodedescargas.cnig.es/CentroDescargas/busquedaRedirigida.do?ruta=PUBLICACION_CNIG_DATOS_VARIOS/aneTematico/Espana_Cobertura-de-las-prestaciones-por-desempleo_2019-2020_mapa_17871_spa.zip Datos] Versiones interactivas [//interactivo-atlasnacional.ign.es/index.php#c=indicator&i=c12336.c12336&t=A02&view=map10 1] [//interactivo-atlasnacional.ign.es/index.php#c=indicator&i=c12337.c12337&t=A02&view=map10 2] [http://interactivo-atlasnacional.ign.es/index.php#c=indicator&i=c12338.c12338&t=A02&view=map10 3] .]]A partir de los datos trimestrales de la Encuesta de Población Activa (EPA), se aprecia que los efectos de la pandemia se manifiestan rápido y son especialmente negativos para los hogares más vulnerables. Tanto en el gráfico de ''[[:Archivo:Espana_Evolucion-de-los-hogares-con-todos-sus-miembros-activos-en-paro_2005-2020_graficoestadistico_18364_spa.jpg|Evolución de los hogares con todos sus miembros activos en paro]] como en el de [[:Archivo:Espana_Hogares-sin-ingresos_2019-2020_mapa_17855_spa.jpg|Evolución de los hogares sin ingresos]]'', se observa que el segundo trimestre de 2020 marca un claro cambio de tendencia de lo que venía pasando desde 2013.
Este cambio de tendencia implica un aumento del riesgo de desempleoThe effects of the pandemic revealed more quickly and were more harmful for more vulnerable households, que resulta ser mucho mayor para las personas que viven en familias vulnerables que para el restoaccording to the quarterly data from the Labour Force Survey. Los hogares más pobres vieron cómo sus ingresos se reducían un tercio en los primeros meses de la pandemia, especialmente si procedían del empleo informal, lo que hizo que aumentara rápidamente la proporción de hogares en pobreza severa, especialmente en aquellos con menores a su cargo. El porcentaje de hogares sin ingresos, fuesen éstos por falta de actividad laboral o por Both the graph on the Evolution in the amount of households where all active members are unemployed and the graph on the Evolution in the amount of households with no recibir prestaciones, aumentó casi un 20% entre el último trimestre de 2019 y el segundo de income show that the second quarter of 2020, pero, en el caso de los hogares con menores dependientes, este aumento fue prácticamente el doble (un 37%). El impacto económico del confinamiento parece haber sido significativamente mayor en los hogares con menores dependientes, lo que resulta preocupante por sus consecuencias marked a largo plazoclear change in trend with respect to the one observed since 2014.
Hasta junio de 2020 las Rentas Mínimas de las comunidades autónomas eran las únicas políticas públicas que tenían como objetivo la cobertura del riesgo de pobreza extremaThis change in direction entails an increased risk of unemployment, pero, durante varias décadas, su cobertura territorial ha sido muy heterogéneawhich is much greater for those who live in vulnerable households. En 2019 estas prestaciones llegaban al 17% de los hogares en riesgo de pobreza en toda España, pero había territorios, como el País Vasco y la Comunidad Foral de Navarra, donde se cubría a todos los que tenían ingresos por debajo del umbral de la pobreza; en Castilla-La Mancha o Andalucía, sin embargo, llegaba The poorest households saw their income drop by a menos del 10% de esos hogares. Más allá de su desigualdad territorialthird in the initial months of the pandemic, el modelo español de rentas mínimas adolecía de una baja intensidad protectora y una cobertura muy limitadaespecially if their members came from ‘informal employment’. Ante esta crisis de la COVID-19 se desarrollaron nuevas medidas para proteger This caused a los hogares en situación de pobreza severarapid rise in the amount of households living in severe poverty, especially amongst those with dependent minors. Se pusieron en marcha medidas de apoyo indirectas con revisiones de la normativa que evitasen el corte de los suministros básicos por impago (electricidadThe percentage of households with no income, gaswhether due to lack of work or to not having received benefits, agua y telecomunicaciones), la ampliación a un mayor número de colectivos sociales del bono social que reduce el coste de la luz, moratorias automáticas en el pago de hipotecas y diversas ayudas a inquilinos vulnerables. El principal problema hasta ahora ha sido el retraso en su concesión, que puede haberlas hecho menos efectivasincreased by almost 20% from the last quarter of 2019 to the second quarter of 2020. Es importante señalar que se trata de medidas de emergenciaHowever, necesariamente transitorias, que no pueden dar respuesta a problemas de naturaleza estructural. La medida más sustancial es de apoyo directo. El Ingreso Mínimo Vital it shall be pointed out that this rise was nearly double as much for households with dependent minors (IMV37%) ha nacido con el objetivo de ofrecer de forma permanente un soporte básico de protección social que prevenga el aumento de las ya muy altas tasas de riesgo de pobreza. Su diseño supone que cualquier hogar con ingresos por debajo de un umbral mínimo de rentaTherefore, determinado según el número de adultos y menores dependientesthe economic impact of lockdown seems to have been significantly more severe in households with dependent minors, complemente sus ingresos con una prestación que le permita alcanzar dicho umbral. La medida está pendiente de su aprobación parlamentaria definitiva y de su desarrollo reglamentariothe long-term consequences of which are an issue of major concern.
La incorporación de su población objetivo está siendo lenta y dificultosa por lo que es difícil valorar la efectividad de la políticaThe ‘Regional Minimum Incomes’ granted by the regional public administrations were until June 2020 the only public policies designed to cover the risk of extreme poverty. For several decades, the geographical coverage of this benefit has been very heterogeneous. In average, these benefits reached 17% of households at risk of poverty throughout Spain in 2019. However, whilst in some regions, such as the Basque Country (Euskadi/País Vasco) and Navarre (Navarra), all households with income below the poverty line were covered, in others, such as Castile–La Mancha (Castilla–La Mancha) and Andalusia (Andalucía), this benefit reached under 10% of them. In addition to this regional inequality, the Spanish minimum income model suffered from a low protective capacity and minimal coverage. With the onset of the COVID-19 health crisis, new measures were put in place to protect households living in extreme poverty. Indirect support mechanisms were developed and the regulations were revised to prevent the withdrawal of basic utilities due to non-payment (electricity, gas, water and telecommunications). Electricity rate subsidies were extended to a wider range of social groups, and automatic moratoria on mortgage payments and various aids to vulnerable tenants were introduced. The main problem was the delay in granting them, which probably made them less effective. It is important to point out that these were emergency and needed transitory measures not intended to solve long-term structural problems. A more substantial direct support scheme, the national Minimum Subsistence Income, was introduced during the pandemic as a permanent social protection instrument designed to reduce the high amount of households at risk of poverty. This scheme is intended to ensure that any household with an income below a minimum threshold (determined by its number of dependent adults and minors) may have its income supplemented with a benefit that allows to reach said threshold. However, granting this benefit to the population for which it is intended is proving to be a slow and challenging process, making it difficult to assess the effectiveness of this policy. The initial results indicate that several Andalusian provinces concentrate the highest amount of national Minimum Subsistence Income beneficiaries, i. Los primeros resultados indican que varias provincias andaluzas concentraron el mayor número de prestacionese. Es el caso de Cádiz, Seville (Sevilla), Granada, Almería y and Jaén. AunqueHowever, al calcular qué porcentaje de hogares con ingresos por debajo del analysing the percentage of households receiving benefits with an income below 40% de los ingresos medianos of the median (hogares en riesgo de pobreza severai.e. those at risk of severe poverty) lo recibe, las conclusiones son muy distintasdraws a very different picture. En For example, in Castile and León (Castilla y León y la Comunidad Foral de ) and Navarre (Navarra más de un ), over 20% de los potenciales perceptores reciben esa prestación mientras que en Cataluña sólo lo hace un of potential beneficiaries received the benefit, whilst this figure was only 7%for Catalonia (Catalunya/Cataluña).
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[[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Hogares que reciben rentas mínimas autonómicas. 2019. EspañaSpain. ]]
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[[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Hogares en situación de pobreza que reciben rentas mínimas autonómicas. 2019. EspañaSpain.]]
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[[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Prestaciones del ingreso mínimo vital en los hogares. 2020. EspañaSpain.]]
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[[File:Logo_Monografía.jpg|left|thumb|300px|MapaMap: Hogares en situación de pobreza que reciben el ingreso mínimo vital. 2020. EspañaSpain.]]
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