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

  • John Micklewright
  • Jeni Klugman
  • Gerry Redmond

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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Paper provided by Innocenti Working Papers in its series 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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  1. 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).
  2. 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.
  3. Grogan, Louise & van den Berg, Gerard J, 1999. "The Duration of Unemployment in Russia," CEPR Discussion Papers 2268, C.E.P.R. Discussion Papers.
  4. Guido Friebel & Sergei Guriev, 1999. "Why Russian Workers Do Not Move: Attachment of Workers Through In-Kind Payments," William Davidson Institute Working Papers Series 283, William Davidson Institute at the University of Michigan.
  5. John Ham & Jan Svejnar & Katherine Terrell, 1998. "Unemployment and the Social Safety Net During Transitions to a Market Economy: Evidence from the Czech and Slovak Republic," William Davidson Institute Working Papers Series 169, William Davidson Institute at the University of Michigan.
  6. Aline Coudouel & Sheila Marnie & John Micklewright, 1998. "Targeting Social Assistance in a Transition Economy: the Mahallas in Uzbekistan," Innocenti Occasional Papers, Economic Policy Series iopeps98/4, UNICEF Innocenti Research Centre.
  7. 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.
  8. 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.
  9. George C. Tsibouris & Vito Tanzi, 2000. "Fiscal Reform Over Ten Years of Transition," IMF Working Papers 00/113, International Monetary Fund.
  10. 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).
  11. 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.
  12. 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.
  13. 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.
  14. Jeffrey M. Davis & A. Cheasty, 1996. "Fiscal Transition in Countries of the Former Soviet Union; An Interim Assessment," IMF Working Papers 96/61, International Monetary Fund.
  15. 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.
  16. 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.
  17. 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.
  18. Irina Denisova & Stanislav Kolenikov & Ksenia Yudaeva, 2000. "Child Benefits and Child Poverty," Working Papers w0006, Center for Economic and Financial Research (CEFIR).
  19. 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.
  20. FAREED M. A. HASSAN & ŽELJKO BOGETIC, 1996. "Effects Of Personal Income Tax On Income Distribution: Example From Bulgaria," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 17-28, October.
  21. UNICEF Innocenti Research Centre. MONEE project, 2001. "A Decade of Transition," Regional Monitoring Report remore01/15, UNICEF Innocenti Research Centre.
  22. repec:cup:cbooks:9780521433297 is not listed on IDEAS
  23. Jorge Martinez-Vasquez & Jameson Boex, 2001. "Russia's Transition to a New Federalism," World Bank Publications, The World Bank, number 15248.
  24. 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.
  25. 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.
  26. Martinez-Vazquez, Jorge & McNab, Robert M., 2000. "The Tax Reform Experiment in Transitional Countries," National Tax Journal, National Tax Association, vol. 53(n. 2), pages 273-98, June.
  27. repec:cup:cbooks:9780521438827 is not listed on IDEAS
  28. Christian Keller & Peter S. Heller, 2001. "Social Sector Reform in Transition Countries," IMF Working Papers 01/35, International Monetary Fund.
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