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Poverty in the Transition: Social expenditures and the working-age poor

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  • Jeni Klugman
  • John Micklewright
  • Gerry Redmond
  • UNICEF - United Nations Children's Fund

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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Bibliographic Info

Paper provided by UNICEF Innocenti Research Centre in its series Innocenti Working Papers with number inwopa02/18.

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Length: 68
Date of creation: 2002
Date of revision:
Handle: RePEc:ucf:inwopa:inwopa02/18

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Keywords: economic monitoring; economic policy; economic transition; social welfare;

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References

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  1. Grogan, Louise & van den Berg, Gerard J, 1999. "The Duration of Unemployment in Russia," CEPR Discussion Papers 2268, C.E.P.R. Discussion Papers.
  2. J. David Brown & John S. Earle, . "Gross Job Flows in Russian Industry Before and After Reforms: Has Destruction Become More Creative?," Upjohn Working Papers and Journal Articles jse20021, W.E. Upjohn Institute for Employment Research.
  3. Christian Keller & Peter S. Heller, 2001. "Social Sector Reform in Transition Countries," IMF Working Papers 01/35, International Monetary Fund.
  4. 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.
  5. UNICEF Innocenti Research Centre. MONEE project, 2001. "A Decade of Transition," Regional Monitoring Report remore01/15, UNICEF Innocenti Research Centre.
  6. 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.
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  8. Jorge Martinez-Vazquez & Robert McNab, 2000. "Tax Reform in The Tax Reform Experiment in Transitional Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0001, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
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  12. Gerry Redmond, 1998. "Incomes, Incentives and the Growth of Means Testing in Hungary," Discussion Papers 0087, University of New South Wales, Social Policy Research Centre.
  13. Brian Pinto & Vladimir Drebentsov & Alexander Morozov, 2000. "Give Macroeconomic Stability and Growth in Russia a Chance," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(2), pages 297-324, July.
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  16. Elena Bardasi & Ana Lasaosa & John Micklewright & Gyula Nagy, 1999. "Measuring the Generosity of Unemployment Benefit Systems: Evidence from Hungary and elsewhere in Central Europe," Budapest Working Papers on the Labour Market 9908, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
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  23. Martina Lubyova & Jan C. van Ours, 1999. "Unemployment durations of job losers in a labour market in transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(3), pages 665-686, November.
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  26. 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.
  27. 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.
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Citations

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Cited by:
  1. repec:wii:bpaper:bowp:086 is not listed on IDEAS
  2. Sunnee Billingsley, 2010. "The Post-Communist Fertility Puzzle," Population Research and Policy Review, Springer, vol. 29(2), pages 193-231, April.
  3. repec:wii:bpaper:bowp:090 is not listed on IDEAS
  4. Noland, Marcus & Son, Hyun H., 2012. "Editors’ introduction transitional economies: Progress and pitfalls," Journal of Asian Economics, Elsevier, vol. 23(2), pages 107-110.
  5. Brück, Tilman & Danzer, Alexander M. & Muravyev, Alexander & Danzer, Natalia, 2007. "Determinants of Poverty during Transition: Household Survey Evidence from Ukraine," IZA Discussion Papers 3228, Institute for the Study of Labor (IZA).
  6. Brück, Tilman & Danzer, Alexander M. & Muravyev, Alexander & Weisshaar, Natalia, 2010. "Poverty during transition: Household survey evidence from Ukraine," Munich Reprints in Economics 19991, University of Munich, Department of Economics.
  7. 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.
  8. 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.
  9. Larysa Krasnikova & Olena Osinkina & Tamara Podvysotskaya & Yuriy Podvysotskiy, 2011. "Does health Matter for Inequality in Transition Countries: The Case of Ukraine," wiiw Balkan Observatory Working Papers 90, The Vienna Institute for International Economic Studies, wiiw.
  10. Fabian Bornhorst & Simon Commander & UNICEF - United Nations Children's Fund, 2005. "Integration and the Well-being of Children in the Transition Economies," Innocenti Working Papers inwopa05/31, UNICEF Innocenti Research Centre.
  11. Tiiu Paas, 2003. "Social Consequences of Transition and European Integration Processes in the Baltic States," ERSA conference papers ersa03p382, European Regional Science Association.
  12. Radwan Shaban & Hiromi Asoaka & Bob Barnes & Vladimir Drebentsov & John Langenbrunner & Sajaia Zurab & James Stevens & David Tarr & Emil Tesliuc & Olga Shabalina & Ruslan Yemtsov, 2006. "Reducing Poverty through Growth and Social Policy Reform in Russia," World Bank Publications, The World Bank, number 6955, October.
  13. Facchini, Giovanni & Segnana, Maria Luigia, 2003. "Growth at the EU periphery: the next enlargement," The Quarterly Review of Economics and Finance, Elsevier, vol. 43(5), pages 827-862.
  14. Gustafsson, Bjorn & Nivorozhkina, Ludmila, 2005. "How and why transition made income inequality increase in urban Russia: A local study," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 772-787, December.

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