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Poverty and Welfare | Cato Institute
According to the survey data, the at-risk-of-poverty rate 1 in was In , the lowest at-risk-of-poverty rate by the most frequent activity status was obtained for employees, 4. It amounted to 5. Analysis and official estimations show that the profile of poverty has changed under the influence of the crises and that the risk of absolute poverty has increased for the children and the youth population under the age of 30 [ 15 ]. The highest at-risk-of-poverty rate by the most frequent activity status was for unemployed persons, and it amounted to It was For the self-employed, the at-risk-of-poverty rate was Regardless of the impossibility to compare directly the data from mentioned surveys due to the different methodology, the results from and show that the risk of poverty in Croatia is directly related to exclusion from the world of work.
In , the highest at-risk-of-poverty rate was indicated for unemployed persons and amounted to This may be caused by the fact that social welfare benefits particularly in that time applied subsistence benefit had a relatively more pronounced effect on families with children.
According to the small area estimation model and consumption approach, the estimated at-risk-of-poverty rate in Croatia amounted to It is assessed that Looking at the estimates at the level of counties, they range from 5. Of the population in the EU, More than one-third of the population was at risk of poverty in the three EU member states: Romania The at-risk-of poverty rate after social transfers for Croatia in was The material deprivation rate presents the share of persons who live in households that—because of insufficient financial resources—cannot afford at least three of nine deprivation items.
For Croatia, the rate of material deprivation in was Succinctly, in Croatia areas most affected by poverty often have high unemployment and inactivity rates of their population. The education attainments of local population are mostly low; while poor areas can provide only lower incomes, lower living standards and poorer dwelling conditions contribute to the significant depopulation to other parts of the country or abroad. In the following section, attention is oriented towards more detailed characteristics of poor citizens in Croatia.
There are several prevailing groups among the poor in Croatia, principally the unemployed and inactive persons.
In that way, in-work poverty is not a particular problem in Croatia because employment and self-employment according to the data from is a relatively secure protection from poverty. The situation did not change during the economic crisis, and the main traits of poverty have stayed the same. In Croatia, there has been a division of the society: relatively securely employed insiders and the unemployed persons outsiders of whom a substantial share is the long-term unemployed [ 20 ].
A significant part of long-term unemployed persons is with low employability. Thus, they have small chances of finding a job and are trapped to live in the poverty. According to the presence of the risk of in-work poverty, Croatia is below the EU average, regardless of the type of labour contract.
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However, there are various groups of employees that are probably more exposed to in-work poverty, primarily people without education and qualification and people with lower educational attainments, employees working only on seasonal work, self-employed employers, involuntary part-time employed and temporary agency workers. Although the unemployed and inactive represent a relatively small share of the poor population in the Croatia, they are seriously exposed to danger from poverty, while working status—particularly permanent and full-time employment—is a reliable shelter against poverty.
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Almost three-fourths of the poor citizens live in families whose main member has only a primary education or even incomplete primary education. The risk of poverty is overall high when low educational attainment is linked with inactivity or unemployment. Citizens that live in households where the household head is an unemployed or inactive are around three times more likely to be trapped in poverty than the total population.
The probability of poverty problems is even greater for the unemployed persons with small children. Poverty in Croatia is stagnant—those who are poor have limited possibilities and need a great deal of time to exit from poverty. The first goal of the analysis was to make a distinction between subgroups of users.
The author takes into the account their working participation or inactivity and how long they had been receiving welfare benefits. The second goal was to find out which factors were predominant in determining the duration of the period of obtaining benefits. In the analysis, there was a sample of social beneficiaries.
According to their employment status, welfare recipients consist of two dominant groups: the unemployed persons and the disabled. In comparison to other transitional countries, Croatia has a higher share of unemployed persons in all welfare recipients.
Probably, many do not have basic skills of literacy and numeracy, while some have had no formal education at all. The less educated and the older recipients are more likely to remain longer as social welfare benefit recipients. The average length of benefit-receiving is quite long almost 5 years.
The average length of welfare scheme usage is 7.
Combating Poverty in Local Welfare Systems
Regarding the age, it is 2. According to regression analysis, one can predict that welfare assistance is received for a longer period by applicants of senior age, of lower level of education, those who are not married and living in incomplete families and who receive other benefits available under the social welfare system. Those who do not have remunerative employment due to low levels of education attainment are also likely to transfer their limited opportunities for their children.
Available data show that the access of children from poor families to upper secondary and tertiary education level is very limited. The children of the poor are more likely to drop out of the schooling system early, and differences in access to tertiary education are obvious. The poor have access to university only through relatively few highly competitive scholarships. The lack of access to levels of education that are highly valued on the market tends to prolong existing inequalities in earning prospects between the poor and non-poor and to create the probability for the intergenerational transfer of poverty [ 11 ].
As a conclusion, we can reiterate that a considerable number of Croatian citizens, particularly the unemployed and inactive persons, suffer from a poor financial situation, adverse social and living conditions and absence of suitable access to public goods and services. Due to the long-lasting economic recession from to , increased unemployment and budgetary problems, there was further deterioration of the social position of significant number of citizens.
In order to alleviate the consequences of the crisis, the government is proposing and implementing various measures regarding economic, fiscal and particularly social welfare policy. The eradication of poverty is an ethical and moral imperative rooted in the principles stipulated and respected by the United Nations UN. It is, also, a part of various important international documents such as the Millennium Declaration and the Millennium Development Goals of the UN, as well as documents related to the European principles of solidarity and the welfare state such as the European Social Charter.
To live a life free from poverty and hunger is one of the human rights and fundamental freedoms incorporated in the Universal Declaration of Human Rights. The Croatian Government is also active in the eradication of poverty, which is obvious in various strategic documents like the Joint Inclusion Memorandum of the Republic of Croatia from , Strategy for Combating Poverty and Social Exclusion in the Republic of Croatia — and National Reform Programme The current social welfare protection system in Croatia is a mix of old and new programmes. It has been frequently changed due to the altering social opportunities and conditions with the intention to ensure more efficiently the provision of social transfers and needed services.
Croatian social welfare system consists of three basic components: cash aids, benefits and services in kind and a variety of foster care and residential programmes. According to the statistics maintained by the Ministry of Demography, Family, Youth and Social Policy, there are various financial transfer benefits as well as numerous types of in-kind assistance provided.