Publication: Social Assistance in the New EU Member States : Strengthening Performance and Labor Market Incentives
Date
2007
ISSN
Published
2007
Author(s)
Ringold, Dena
Kasek, Leszek
Abstract
This report looks at safety nets in the
new member states from the perspective of fiscal impact and
effectiveness. Given the limited budgets for social
assistance, ensuring that resources are spent well, reach
those who need them, and optimize welfare gains and labor
market outcomes. This also requires attention to the balance
between spending on means-tested antipoverty programs and
family benefits and social insurance programs. Because of
high levels of pension spending and rapidly aging
populations, there is a risk that contributory social
insurance spending will crowd out spending on social
assistance. Managing the long-term fiscal sustainability of
these programs to meet emerging needs is a priority. This
paper looks at social assistance within the broader context
of social protection. The main focus of the policy
discussion is on the guaranteed minimum income programs,
which comprise the centerpiece of the social assistance
systems in each of the EU8 countries. Child allowances are
also discussed, which are the most important programs from
the perspective of spending levels. The first Chapter
reviews the datasets and approach. Chapter 2 looks at the
context of poverty and social exclusion in the EU8 and the
implications for safety nets. Chapter 3 analyses social
protection spending. Chapter 4 reviews the performance of
social assistance and social protection based on household
survey data for six of the countries. Chapter 5 discusses
policy design issues including administration,
decentralization and activation measures. Chapter 6 looks at
the labor market incentives of combined taxes and benefits,
and discusses in-work benefits. Chapter 7 concludes.
Citation
“Ringold, Dena; Kasek, Leszek. 2007. Social Assistance in the New EU Member States : Strengthening Performance and Labor Market Incentives. World Bank Working Paper No.117. © Washington, DC: World Bank. http://openknowledge.worldbank.org/handle/10986/6744 License: CC BY 3.0 IGO.”
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