Poverty Alleviation and the Degree of Centralization in European Schemes of Social Assistance

Abstract

In this paper, the relationship between the degree of centralisation and the distributive outcomes in European schemes of social assistance is investigated. For this purpose, a scheme of classification suitable for grouping the EU15 schemes except for Luxembourg according to features related to centralisation is established and an indicator for centralisation is developed. Subsequently, on the basis of LIS data the effectiveness and efficiency in reducing poverty through social assistance payments are calculated for five selected EU systems and the linkage of their distributive impacts to the degree of centralisation is examined.

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