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Reduction of child poverty in Serbia: Benefit or employment strategy?
Author(s) -
Clavet NicholasJames,
Tiberti Luca,
Vladisavljević Marko,
Rakić Jelena Žarković,
Anić Aleksandra,
Krstić Gorana,
Ranđelović Saša
Publication year - 2019
Publication title -
economics of transition and institutional change
Language(s) - English
Resource type - Journals
eISSN - 2577-6983
pISSN - 2577-6975
DOI - 10.1111/ecot.12197
Subject(s) - allowance (engineering) , microsimulation , economics , incentive , poverty , unemployment , child poverty , labour supply , context (archaeology) , labour economics , poverty reduction , work (physics) , serbian , economic growth , operations management , mechanical engineering , paleontology , linguistics , philosophy , transport engineering , engineering , biology , microeconomics
Based on the Serbian Survey of Income and Living Conditions ( SILC ) and tax benefits and structural microsimulation models, we evaluate the labour supply and distributive effects of several reform strategies concerning two major social transfers in Serbia: child allowance and social monetary assistance. Our results show that, in a context of a low labour participation rate, and high unemployment and informality rates, a benefit strategy is by far the more cost‐effective option for reducing child poverty than an employment strategy that aims to raise the work incentives for parents. Both proposed reforms are found to be progressive.