Social Assistance and Poverty Reduction in Moldova, 2001-2004 - An Impact Evaluation

32 Pages Posted: 20 Apr 2016

See all articles by Paolo Verme

Paolo Verme

World Bank Group; University of Turin - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: June 1, 2008

Abstract

This paper assesses the impact of social assistance benefits on household welfare in Moldova. Ignoring standard issues of impact evaluations such as selection bias, behavioral responses, unobserved heterogeneity and endogeneity, an incidence analysis suggests that increased spending on social assistance enhances the probability of moving out of poverty and reduces the probability of moving into poverty. However, double difference estimates (based on a mimicked randomized experiment) and parametric estimates (based on panel data) indicate that social benefits have not contributed to improve household welfare or reduce poverty. Double difference estimates point to a negative impact on welfare. Parametric estimates do not yield any consistent significant impact on welfare or poverty. The author concludes that the growth in population coverage and expenditure on cash benefits that characterized social assistance policies in recent years has not resulted in a significant improvement in welfare, all other factors being equal.

Keywords: Safety Nets and Transfers, Rural Poverty Reduction, Services & Transfers to Poor, Economic Theory & Research

Suggested Citation

Verme, Paolo, Social Assistance and Poverty Reduction in Moldova, 2001-2004 - An Impact Evaluation (June 1, 2008). World Bank Policy Research Working Paper No. 4658, Available at SSRN: https://ssrn.com/abstract=1154335

Paolo Verme (Contact Author)

World Bank Group ( email )

Washington, DC 20433
United States

University of Turin - Department of Economics ( email )

Via Po, 53
Torino, 10124
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
121
Abstract Views
1,068
Rank
476,527
PlumX Metrics