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Reducing Child Poverty In Romania: The Role Of Universal Child Benefit

Author

Listed:
  • Elena-Madalina ZAMFIR (AVRAM)

    (Bucharest University of Economic Studies; Ministry of Finance - Romania)

  • Georgiana BALABAN

    (Bucharest University of Economic Studies; Ministry of Finance - Romania)

  • Alina Ionela ARSANI

    (Bucharest University of Economic Studies)

Abstract

Child poverty is a structural issue and a persisting challenge in Romania.According to the latest figures published by Eurostat, 4 in 10 children were at risk of poverty or social exclusion in 2020, almost double compared to the EU27 average. For 2022, the Government decided to increase the universal child benefit by 14% and 41%, depending on the age and the health status of children. The aim of this analysis is to gauge the impact of rising universal child allowance in reducing child poverty in Romania. For this purpose, our paper makes use of the EUROMOD, the EU tax-benefit microsimulation model based on the 2019 EU-SILC database. The main takeaway of this analysis is that increasing universal child allowance has only a marginal impact on children poverty and should not be seen as the sole ingredient to solve this multidimensional phenomenon. In order to tackle this delicate situation, authorities should put in place a coherent strategy at national level, with targeted measures and effective investment. Furthermore, the Government should take full advantage of the Recovery and Resilience Fund and implement reforms to improve the welfare of children, with focus on disadvantaged groups.

Suggested Citation

  • Elena-Madalina ZAMFIR (AVRAM) & Georgiana BALABAN & Alina Ionela ARSANI, 2022. "Reducing Child Poverty In Romania: The Role Of Universal Child Benefit," Romanian Journal of Economics, Institute of National Economy, vol. 54(1(63)), pages 34-57, June.
    • Handle: RePEc:ine:journl:v:54:y:2022:i:63:p:34-57
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    References listed on IDEAS

    as
    1. Martin Evans & Alejandra Hidalgo & Mei Wang, 2018. "Universal Child Allowances in 14 Middle Income Countries: Options for Policy and Poverty Reduction," LIS Working papers 738, LIS Cross-National Data Center in Luxembourg.
    2. Avram, Silvia & Militaru, Eva, 2015. "Interactions between policy effects, population characteristics and the tax-benefit system: an illustration using child poverty and child related policies in Romania and the Czech Republic," EUROMOD Working Papers EM4/15, EUROMOD at the Institute for Social and Economic Research.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    universal child benefit; child poverty; microsimulation; EUROMOD universal child benefit; child poverty; microsimulation; EUROMOD;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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