IMF Working Papers

The Social Safety Net in Albania

By Natasha Koliadina

August 1, 1996

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Format: Chicago

Natasha Koliadina. The Social Safety Net in Albania, (USA: International Monetary Fund, 1996) accessed September 27, 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 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

Publication Details

  • Pages:

    60

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1996/096

  • Stock No:

    WPIEA0961996

  • ISBN:

    9781451851861

  • ISSN:

    1018-5941

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