The Social Safety Net in Albania
August 1, 1996
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Summary
This paper reviews the developments in the social safety net system of Albania since the beginning of its economic adjustment program in mid-1992 through the third quarter of 1995. It shows that the social safety net system was quickly reformed, and that this allowed Albanian authorities to support the most needy groups of the population with income transfers. Notwithstanding the low administrative costs, the social safety net system is not financially sustainable. Expenditures are not balanced with revenues, and the gap cannot be closed in the short-run. Poor targeting of the benefits and administrative loopholes spur expenditures. Revenue growth is hindered by low compliance with the social security contributions. The paper concludes with some suggestions for addressing this issues.
Subject: Expenditure, Labor, Pension spending, Social assistance spending, Social security contributions, Taxes, Unemployment, Unemployment benefits
Keywords: base wage, Eastern Europe, flat rate, injury benefit, Pension spending, private sector, public enterprise, replacement ratio, severance pay, Social assistance spending, Social security contributions, state enterprise, Unemployment, Unemployment benefits, unemployment insurance, WP
Pages:
60
Volume:
1996
DOI:
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Issue:
096
Series:
Working Paper No. 1996/096
Stock No:
WPIEA0961996
ISBN:
9781451851861
ISSN:
1018-5941
