By Dena Ringold;Leszek Kasek
This examine analyzes the functionality of social assistance and kinfolk gain courses in 8 new member states of the eu Union from the point of view of financial influence and effectiveness. it really is in response to family survey info for 6 nations, in addition to funds info and data on application layout gathered on the nationwide point. It unearths that, even though social assistance courses within the new member states are small when it comes to assurance and expenditure degrees (reaching 2 to five percentage of the population), the courses are a tremendous safeguard web for the terrible. courses are fairly good special, with among 30 and 60 percentage of assets going to the poorest quintile of the inhabitants. if you happen to obtain them, merits could make up up to 37 percentage of regular intake of the bad.
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Additional info for Social Assistance in the New EU Member States: Strengthening Performance and Labor Market Incentives (World Bank Working Papers)
Sample text
Total social protection spending in the EU8 countries remains below the EU15, which stood at 27 percent of GDP in 2003. Between 2001 and 2003, social protection spending contracted alongside total government expenditures in the Baltic States, Slovakia, and Slovenia, and expanded in the Visegrad countries, particularly Hungary. Composition of Social Protection Spending Pensions. Social insurance, especially pensions, are contribution based benefits intended to smooth consumption over the lifecycle, provide income security during old 12.
Coverage of social protection is high in the EU8, with the majority of households receiving at least one benefit. In 2004 coverage ranged from 90 percent in Hungary to 62 percent in Lithuania (Figure 10). Coverage of social protection is progressive. The poor (defined as the bottom quintile of the population) receive social protection at a higher rate, reaching nearly 100 percent of the population in Hungary in 2004. 21 22 World Bank Working Paper Figure 10. Coverage of Social Protection Benefits, 2004 (percent of individuals in households receiving a benefit) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Estonia Hungary Total Poland Latvia Bottom Quintile Lithuania Slovenia Top Quintile Source: World Bank Household Survey Database.
Tax credits are directed to low income working families, aim at improving the net income of these families and thus contribute to reducing poverty, while at the same time creating work incentives. Wage-related transfers and lump-sum payments are aimed at those currently not in work, seeking to ease the transition from long-term unemployment to work. Normally, tax credit schemes have no time limit, while wage-related transfers are time-limited. There is also potential interplay with activation measures and active labor market policies.
