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Simulating Policy Reform: Distributional and Poverty Outcomes of the New Social Welfare Law in Serbia

In: Poverty and Exclusion in the Western Balkans

Author

Listed:
  • Mihail Arandarenko

    (University of Belgrade)

  • Sonja Avlijas

    (University of Belgrade)

  • Sasa Randjelovic

    (University of Belgrade)

  • Marko Vladisavljevic

    (University of Belgrade)

  • Jelena Zarkovic Rakic

    (University of Belgrade)

Abstract

This chapter presents micro-simulation results of the impact of a new social welfare law adopted in Serbia in 2010 on income distribution and poverty outcomes across households. Micro-simulations were conducted using a tax-benefit micro-simulation model for Serbia (SRMOD). The new law introduced a number of the changes to the eligibility criteria for the last-resort social assistance programme discussed in this chapter. These are expected to improve significantly the targeting of social assistance, both in terms of its expanded coverage and increases in the amounts of social assistance received by the already eligible households. Simulation results suggest that the changes in legislation would increase social assistance eligibility of households in the poorest income decile by 18.4 %. The average amount of the benefit would increase by about 10.6 % per adult equivalent. Finally, total fiscal expenditures on MOP would increase by 34.6 %.

Suggested Citation

  • Mihail Arandarenko & Sonja Avlijas & Sasa Randjelovic & Marko Vladisavljevic & Jelena Zarkovic Rakic, 2013. "Simulating Policy Reform: Distributional and Poverty Outcomes of the New Social Welfare Law in Serbia," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Caterina Ruggeri Laderchi & Sara Savastano (ed.), Poverty and Exclusion in the Western Balkans, edition 127, chapter 0, pages 261-281, Springer.
    • Handle: RePEc:spr:esichp:978-1-4614-4945-4_15
    DOI: 10.1007/978-1-4614-4945-4_15
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    Cited by:

    1. Nicholas-James Clavet & Luca Tiberti & Marko Vladisavljevic & Jelena Zarkovic Rakic & Aleksandra Anic & Gorana Krstic & Sasa Randelovic, 2017. "Reduction of child poverty in Serbia: Improved cash-transfers or higher work incentives for parents?," Working Papers PMMA 2017-04, PEP-PMMA.

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