Outcomes of social assistance in Central and Eastern Europe: a pre-transfer post-transfer comparison

Publication type

ISER Working Paper Series

Series Number

2013-18

Series

ISER Working Paper Series

Author

Publication date

October 9, 2013

Abstract:

The poverty reduction potential of national social assistance programs in eight Central and Eastern European countries is examined using data from the EU-SILC. Results indicate that social assistance programs are a marginal component of the social protection system throughout the region. They serve small populations, spend relatively little compared to needs and the benefits they award are largely a top-up for their clients. However, the more extensive and liberal programs achieve higher effectiveness in reducing poverty. Unlike Western Europe, no trade-off between extensiveness and benefit generosity or between generosity and efficiency could be found. Decentralization and discretion are associated with inefficiency and arbitrariness in entitlement decisions rather than improved targeting.

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