High levels of child poverty pose a significant problem in Serbia. Currently there are two means-tested benefits that aim to reduce poverty: child allowance and monetary social assistance, but they do not take account of informal income. A team of local researchers investigates which potential policy reform is the most effective in reducing child poverty: a benefit strategy that takes into account revenues from informal work, or a work strategy to improve parental labor participation. The findings indicate that the benefit strategy would improve targeting and coverage, and could lead to a reduction in child poverty between 1.3 and 1.6 percentage points. Find out more about the research methods, findings and policy recommendations in the following PEP publications:

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