Reduction of child poverty in Serbia: benefit or employment strategy?

Publication type:

Journal Article


Nicholas-James Clavet, Luca Tiberti, Marko Vladisavljević, Jelena Žarković Rakić, Aleksandra Anić, Gorana Krstić and Saša Ranđelović

Publication date

15 Jul 2019


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.

Published in

Economics of Transition and Institutional Change





Young People, Labour Economics, Poverty, Welfare Benefits and Microsimulation