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Albania: Income Distribution, Poverty, and Social Safety Nets in the Transition, 1991-1993

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  • International Monetary Fund

Abstract

This paper examines developments in Albania’s income distribution and poverty during the transition to a market-oriented economy. It pays particular attention to the impact of price liberalization on the agricultural terms of trade and production, the decline in state enterprise employment, emigrant remittances, and social safety nets. Income and consumption data produce conflicting results. Based on income data, including average presumptive agricultural incomes and state sector wages, there is a significant rise in real income in rural areas and a decline in real income in urban areas. Based on food consumption data, however, a large decline in urban real incomes is implausible. Poverty in both the urban and the rural population was mitigated by the presence of formal social safety nets, as well as informal arrangements in the form of emigrant remittances.

Suggested Citation

  • International Monetary Fund, 1994. "Albania: Income Distribution, Poverty, and Social Safety Nets in the Transition, 1991-1993," IMF Working Papers 1994/123, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1994/123
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    Cited by:

    1. Schady, Norbert R., 1999. "Seeking votes - the political economy of expenditures by the Peruvian Social Fund (FONCODES), 1991-95," Policy Research Working Paper Series 2166, The World Bank.
    2. Fasano-Filho, Ugo, 1996. "Economic policy making in sub-Saharan Africa and IMF involvement," The Quarterly Review of Economics and Finance, Elsevier, vol. 36(Supplemen), pages 115-151.

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