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REDUCING CHILD POVERTY IN ROMANIA: THE ROLE OF UNIVERSAL CHILD BENEFIT

Elena-Madalina ZAMFIR (avram), Georgiana Balaban and Alina Ionela Arsani
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Elena-Madalina ZAMFIR (avram): Bucharest University of Economic Studies; Ministry of Finance - Romania
Georgiana Balaban: Bucharest University of Economic Studies; Ministry of Finance - Romania
Alina Ionela Arsani: Bucharest University of Economic Studies

Romanian Journal of Economics, 2022, vol. 54, issue 1(63), 34-57

Abstract: Child poverty is a structural issue and a persisting challenge in Romania.According to the latest figures published by Eurostat, 4 in 10 children were at risk of poverty or social exclusion in 2020, almost double compared to the EU27 average. For 2022, the Government decided to increase the universal child benefit by 14% and 41%, depending on the age and the health status of children. The aim of this analysis is to gauge the impact of rising universal child allowance in reducing child poverty in Romania. For this purpose, our paper makes use of the EUROMOD, the EU tax-benefit microsimulation model based on the 2019 EU-SILC database. The main takeaway of this analysis is that increasing universal child allowance has only a marginal impact on children poverty and should not be seen as the sole ingredient to solve this multidimensional phenomenon. In order to tackle this delicate situation, authorities should put in place a coherent strategy at national level, with targeted measures and effective investment. Furthermore, the Government should take full advantage of the Recovery and Resilience Fund and implement reforms to improve the welfare of children, with focus on disadvantaged groups.

Keywords: universal child benefit; child poverty; microsimulation; EUROMOD universal child benefit; child poverty; microsimulation; EUROMOD (search for similar items in EconPapers)
JEL-codes: I32 I38 (search for similar items in EconPapers)
Date: 2022
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