Publication: Analysis of Potential Work Disincentive Effects of the Monthly Benefit for Poor Families in the Kyrgyz Republic
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2015-04-29
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2015-11-16
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The objective of this report was to address the concerns with respect to potential disincentive effects to labor participation of the only poverty-targeted social protection program in the Kyrgyz Republic, the Monthly Benefit for Poor Families with Children (MBPF). The benefit provided by the program is the only social assistance transfer in the Kyrgyz Republic specifically targeted at extremely poor households with children. It is a means-tested transfer that provides monthly cash benefits to lift per capita income of each child in eligible households to the Guaranteed Minimum Income (GMI). The report examines the MBPF from different angles. First, the report reviews the design features of the MBPF, focusing on the targeting method and the size of the benefit, with respect to household incomes, consumption and formal and informal wages by economic sector. Secondly, it compares the demographic profile, including labor force participation outcomes, of MBPF beneficiaries to that of non-beneficiaries. The comparison of the labor force participation status of beneficiaries and non-beneficiaries focus on the group of people which could be expected to be economically active and have children. The reference group is comprised of the able-bodied working age population (aged 18-62 years old), excluding full time students, living in households with children under 18 years old. Thirdly, it empirically analyzes the potential disincentives for labor force participation of the MBPF, using a quasi-experimental method to analyze the difference in labor market outcomes between MBPF beneficiaries and individuals with similar characteristics, but which are not receiving a transfer.
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“World Bank Group. 2015. Analysis of Potential Work Disincentive Effects of the Monthly Benefit for Poor Families in the Kyrgyz Republic. © World Bank. http://hdl.handle.net/10986/22966 License: CC BY 3.0 IGO.”
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