Social Assistance in the New EU Member States: Strengthening by Dena Ringold;Leszek Kasek

By Dena Ringold;Leszek Kasek

This research analyzes the functionality of social advice and relations gain courses in 8 new member states of the eu Union from the viewpoint of financial impression and effectiveness. it really is in line with family survey information for 6 nations, in addition to finances information and data on software layout accrued on the nationwide point. It reveals that, even though social tips courses within the new member states are small when it comes to insurance and expenditure degrees (reaching 2 to five percentage of the population), the courses are a major safeguard web for the terrible. courses are quite good designated, with among 30 and 60 percentage of assets going to the poorest quintile of the inhabitants. in the event you obtain them, merits could make up up to 37 percentage of commonplace 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

Experience from Romania and Bosnia and Herzegovina shows that premature decentralization of financing responsibility for social assistance benefits can undermine their provision, as institutional and financing arrangements are unable to cope with the requirements of administering cash benefits. After delivery of cash transfers collapsed in the late 1990s, Romania recentralized social assistance financing in 2002. Meanwhile, in Bosnia and Herzegovina, decentralized financing mechanisms have resulted in substantial inter-regional disparities in coverage, with poorer localities providing the least amount of services.

Sickness benefits have been escalating in OECD countries. In the Figure 4. Pension Spending and Average Exit Age from the Labor Force in the EU Pension expenditure in 2003, % of GDP 15 AT PL FR 12 BE SI DE EU15 EU25 NL FI MT SE PT DK LU 9 GR ES UK HU CZ SK LV LT EE 6 CY IE 3 55 56 57 58 59 60 61 62 63 Average exit age from the labor market in 2003, years Source: Eurostat based on ESPROSS. 7 percent of GDP between 2001 and 2003. 3). 8 percent of GDP in Slovenia to 3 percent of GDP in Latvia. Eligibility for sickness benefits can range from 4 months to over a year.

It focuses on three key indicators. T ■ Coverage looks at the reach of the system and is defined as the share of households receiving a particular type of benefit. ■ Targeting assesses whether benefits are reaching those who need them and refers to the share of benefits received by each consumption quintile. Targeting also measures the amount of leakage to the non-poor. ■ Finally, adequacy looks at the generosity of the system and is defined as the ratio of the average benefit amount for recipients to average consumption of that group.

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