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Reduction of child poverty in Serbia: Benefit or employment strategy?

Author

Listed:
  • Nicholas‐James Clavet
  • Luca Tiberti
  • Marko Vladisavljević
  • Jelena Žarković Rakić
  • Aleksandra Anić
  • Gorana Krstić
  • Saša Ranđelović

Abstract

Based on the Serbian Survey of Income and Living Conditions (SILC) and tax benefits and structural microsimulation models, we evaluate the labour supply and distributive effects of several reform strategies concerning two major social transfers in Serbia: child allowance and social monetary assistance. Our results show that, in a context of a low labour participation rate, and high unemployment and informality rates, a benefit strategy is by far the more cost‐effective option for reducing child poverty than an employment strategy that aims to raise the work incentives for parents. Both proposed reforms are found to be progressive.

Suggested Citation

  • Nicholas‐James Clavet & Luca Tiberti & Marko Vladisavljević & Jelena Žarković Rakić & Aleksandra Anić & Gorana Krstić & Saša Ranđelović, 2019. "Reduction of child poverty in Serbia: Benefit or employment strategy?," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(3), pages 615-645, July.
  • Handle: RePEc:wly:ectrin:v:27:y:2019:i:3:p:615-645
    DOI: 10.1111/ecot.12197
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    Cited by:

    1. Ranđelović Saša & Žarković Rakić Jelena & Vladisavljević Marko & Vujić Sunčica, 2019. "Labour Supply and Inequality Effects of In-Work Benefits: Evidence from Serbia," Naše gospodarstvo/Our economy, Sciendo, vol. 65(3), pages 1-22, September.

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