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Social Assistance in the New EU Member States : Strengthening Performance and Labor Market Incentives

Author

Listed:
  • Dena Ringold
  • Leszek Kasek

Abstract

This report looks at safety nets in the new member states from the perspective of fiscal impact and effectiveness. Given the limited budgets for social assistance, ensuring that resources are spent well, reach those who need them, and optimize welfare gains and labor market outcomes. This also requires attention to the balance between spending on means-tested antipoverty programs and family benefits and social insurance programs. Because of high levels of pension spending and rapidly aging populations, there is a risk that contributory social insurance spending will crowd out spending on social assistance. Managing the long-term fiscal sustainability of these programs to meet emerging needs is a priority. This paper looks at social assistance within the broader context of social protection. The main focus of the policy discussion is on the guaranteed minimum income programs, which comprise the centerpiece of the social assistance systems in each of the EU8 countries. Child allowances are also discussed, which are the most important programs from the perspective of spending levels. The first Chapter reviews the datasets and approach. Chapter 2 looks at the context of poverty and social exclusion in the EU8 and the implications for safety nets. Chapter 3 analyses social protection spending. Chapter 4 reviews the performance of social assistance and social protection based on household survey data for six of the countries. Chapter 5 discusses policy design issues including administration, decentralization and activation measures. Chapter 6 looks at the labor market incentives of combined taxes and benefits, and discusses in-work benefits. Chapter 7 concludes.

Suggested Citation

  • Dena Ringold & Leszek Kasek, 2007. "Social Assistance in the New EU Member States : Strengthening Performance and Labor Market Incentives," World Bank Publications - Books, The World Bank Group, number 6744.
    • Handle: RePEc:wbk:wbpubs:6744
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    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/6744/405410ECA0Soci1LIC0disclosed0Aug271.pdf?sequence=1
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    References listed on IDEAS

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    1. Giuseppe Carone & Aino Salomäki & Herwig Immervoll & Dominique Paturot, 2003. "Indicators of unemployment and low-wage traps (marginal effective tax rates on labour)," European Economy - Economic Papers 2008 - 2015 197, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. André Sapir, 2006. "Globalization and the Reform of European Social Models," Journal of Common Market Studies, Wiley Blackwell, vol. 44(2), pages 369-390, June.
    3. Dena Ringold & Mitchell A. Orenstein & Erika Wilkens, 2005. "Roma in an Expanding Europe : Breaking the Poverty Cycle," World Bank Publications - Books, The World Bank Group, number 14869.
    4. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766.
    5. Nicholas Barr, 2005. "Labor Markets and Social Policy in Central and Eastern Europe : The Accession and Beyond," World Bank Publications - Books, The World Bank Group, number 7425.
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    Cited by:

    1. Kenneth Nelson, 2009. "Social Assistance and Minimum Income Protection in the EU: Vulnerability, Adequacy, and Convergence," LIS Working papers 511, LIS Cross-National Data Center in Luxembourg.
    2. Kuddo, Arvo, 2009. "Employment services and active labor market programs in Eastern European and Central Asian countries," Social Protection Discussion Papers and Notes 51253, The World Bank.
    3. Margaret Grosh & Carlo del Ninno & Emil Tesliuc & Azedine Ouerghi, 2008. "For Protection and Promotion : The Design and Implementation of Effective Safety Nets," World Bank Publications - Books, The World Bank Group, number 6582.

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