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Poverty in the Transition: Social Expenditures and the Working-Age Poor

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Author Info
Jeni Klugman
John Micklewright
Gerry Redmond

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Abstract

A combination of economic growth and committed revenue-raising should give most governments in Central and Eastern Europe and the former Soviet Union considerable scope to devote increased resources to tackling poverty. We review the extent and nature of poverty across the transition countries, emphasising the phenomenon of the working-age poor. We consider governments' fiscal positions and revenue raising tools, including the issue of whether some countries now have levels of external debt servicing that are so high as to hamper social sector expenditures. We analyse whether the introduction of credible unemployment benefit schemes in the CIS would aid labour market reform and hence help solve the problem there of in-work poverty (we first review experience in Central and Eastern Europe). We focus on the case of Russia, and simulate a simple scheme with 2000 household survey data. The paper concludes by considering the role of improved wages for public service workers and the targeting of categorical benefits.

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Publisher Info
Paper provided by UNICEF Innocenti Research Centre in its series Innocenti Working Papers with number inwopa02/17.

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Length: 68
Date of creation: 2002
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Handle: RePEc:ucf:inwopa:inwopa02/17

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Related research
Keywords: economic monitoring economic policy economic transition social welfare

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Find related papers by JEL classification:
P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health, Education, Welfare, and Poverty

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Guido Friebel, 2000. "Why Russian Workers do not Move: Attachment of Workers through In-Kind Payments," Econometric Society World Congress 2000 Contributed Papers 1376, Econometric Society. [Downloadable!]
    Other versions:
  2. Grogan, Louise & Berg, Gerard J. van den, 1999. "The duration of unemployment in Russia," Serie Research Memoranda 0015, Free University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
    Other versions:
  3. UNICEF Innocenti Research Centre. MONEE project, 2001. "A Decade of Transition," Regional Monitoring Report remore01/15, UNICEF Innocenti Research Centre. [Downloadable!]
  4. Irina Denisova & Stanislav Kolenikov & Ksenia Yudaeva, 2000. "Child Benefits and Child Poverty," Working Papers w0006, Center for Economic and Financial Research (CEFIR). [Downloadable!]
  5. Peter S. Heller & Christian Keller, . "Social Sector Reform in Transition Countries," IMF Working Papers 01/35, International Monetary Fund.
  6. Brown, J David & Earle, John S, 2001. "Gross Job Flows in Russian Industry Before and After Reforms: Has Destruction Become More Creative?," CEPR Discussion Papers 2951, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Guariglia, Alessandra & Kim, Byung-Yeon, 2001. "The Dynamics of Moonlighting: What is happening in the Russian informal economy?," BOFIT Discussion Papers 5/2001, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
  8. Ham, John C & Svejnar, Jan & Terrell, Katherine, 1998. "Unemployment and the Social Safety Net during Transitions to a Market Economy: Evidence from the Czech and Slovak Republics," American Economic Review, American Economic Association, vol. 88(5), pages 1117-42, December. [Downloadable!] (restricted)
    Other versions:
  9. Broadman, Harry G. & Recanatini, Francesca, 2001. "Is Russia restructuring ? new evidence on job creation and destruction," Policy Research Working Paper Series 2641, The World Bank. [Downloadable!]
  10. Vito Tanzi & George C. Tsibouris, 2000. "Fiscal Reform Over Ten Years of Transition," IMF Working Papers 00/113, International Monetary Fund.
  11. Jorge Martinez-Vazquez & Robert McNab, 2000. "Tax Reform in The Tax Reform Experiment in Transitional Countries," International Studies Program Working Paper Series, at AYSPS, GSU paper0001, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  12. Maria Ponomareva & Ekaterina Zhuravskaya, 2004. "Federal Tax Arrears in Russia: Liquidity Problems, Federal Redistribution, or Regional Resistance?," Working Papers w0003, Center for Economic and Financial Research (CEFIR). [Downloadable!]
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  13. Tito Boeri & Katherine Terrell, 2001. "Institutional Determinants of Labor Reallocation in Transition," William Davidson Institute Working Papers Series 384, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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  14. Annette N. Brown, 1997. "The Economic Determinants of the Internal Migration Flows in Russia During Transition," William Davidson Institute Working Papers Series 89, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  15. Hassan, Fareed M A & Bogetic, Zeljko, 1996. "Effects of Personal Income Tax on Income Distribution: Example from Bulgaria," Contemporary Economic Policy, Oxford University Press, vol. 14(4), pages 17-28, October.
  16. Gerry Redmond, 1999. "Incomes, incentives and the growth of means-testing in Hungary," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 77-99, March. [Downloadable!]
  17. Gimpelson, Vladimir & Treisman, Daniel & Monusova, Galina, 2000. "Public Employment and Redistributive Politics: Evidence from Russia’s Regions," IZA Discussion Papers 161, Institute for the Study of Labor (IZA). [Downloadable!]
  18. Micklewright, John & Nagy, Gyula, 1999. "Living standards and incentives in transition: the implications of UI exhaustion in Hungary," Journal of Public Economics, Elsevier, vol. 73(3), pages 297-319, September. [Downloadable!] (restricted)
  19. Coudouel, Aline & Marnie, Sheila & Micklewright, John, 1999. "Targeting Social Assistance in a Transition Economy: the Mahallas in Uzbekistan," CEPR Discussion Papers 2064, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  20. Liam P. Ebrill, 1999. "Tax Reform in the Baltics, Russia, and Other Countries of the Former Soviet Union," IMF Occasional Papers 182, International Monetary Fund.
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Stepan Jurajda & Daniel Münich, 2002. "Understanding Czech Long-Term Unemployment," William Davidson Institute Working Papers Series 498, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  2. Tilman Brück & Alexander M. Danzer & Alexander Muravyev & Natalia Weißhaar, 2007. "Determinants of Poverty during Transition : Household Survey Evidence from Ukraine," Discussion Papers of DIW Berlin 748, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  3. Tiiu Paas, 2003. "Social Consequences of Transition and European Integration Processes in the Baltic States," ERSA conference papers ersa03p382, European Regional Science Association. [Downloadable!]
  4. Mihaly Simai, 2006. "Poverty and Inequality in Eastern Europe and the CIS Transition Economies," Working Papers 17, United Nations, Department of Economics and Social Affairs. [Downloadable!]
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