Albania: Income Distribution, Poverty, and Social Safety Nets in the Transition, 1991-1993

October 1, 1994

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Albania: Income Distribution, Poverty, and Social Safety Nets in the Transition, 1991-1993, (USA: International Monetary Fund, 1994) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper examines developments in Albania’s income distribution and poverty during the transition to a market-oriented economy. It pays particular attention to the impact of price liberalization on the agricultural terms of trade and production, the decline in state enterprise employment, emigrant remittances, and social safety nets. Income and consumption data produce conflicting results. Based on income data, including average presumptive agricultural incomes and state sector wages, there is a significant rise in real income in rural areas and a decline in real income in urban areas. Based on food consumption data, however, a large decline in urban real incomes is implausible. Poverty in both the urban and the rural population was mitigated by the presence of formal social safety nets, as well as informal arrangements in the form of emigrant remittances.

Subject: Balance of payments, Consumption, Expenditure, Income, National accounts, Remittances, Social assistance spending, Unemployment benefits, Wages

Keywords: Cash income, Consumption, Distribution data, Income, Income data, Income development, Private sector, Remittances, Social assistance spending, State enterprise, Subsistence income, Unemployment benefits, Unemployment insurance, Wage distribution, WP

Publication Details

Pages:

72
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1994/123
Stock No:

WPIEA1231994
ISBN:

9781451854541
ISSN:

1018-5941

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