Knowledge Note

"Do social protection programs in Ukraine help reduce poverty and inequality?"

This brief lays out the main aspects of the CEQ approach, and its main results. The analysis finds, for instance, that households at the bottom of the income distribution derive most of their monetary assets from transfers of various types. The tax benefit system, overall, is quite progressive and contributes significantly to the reduction of poverty and inequality. However, not all programs are equally efficient in reducing poverty and inequality. For example, direct transfers, such as means-tested poverty benefits and child benefits, have a larger poverty and inequality impact per hryvnia allocated to them than some indirect subsides. Efficiency of HUS also depends on the choice of the poverty threshold. There is likewise room for improvement in program design.

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