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Inflation and Regional Price Differences 153 3. Poverty Indices 159 4. The Impact of Equivalency Scales on Calculation of the Poverty Gap and P1 161 Tables 167 Page v Maps 25760 Incidence of poverty 25792 The poor: average income shortfall below poverty line 25794 Incidence of poverty 25761 Total number of poor 25793 Unemployment rates of labor force 25796 Workers in public and intervention works 25797 Unemployment rates of labor force 25795 Social assistance spending per poor Page vi List of Figures 1.

Of all public transfers, unemployment benefits and social assistance are the best targeted. In Chile the poorest decile of the population receives about half of all transfers (Figure 7). K. social assistance (income maintenance) delivers 35 percent of all benefits to the poorest decile. In Poland the poorest decile receives only one-fourth of total social assistance and one-fifth of unemployment benefits. There is clearly room for improvement in targeting, particularly for the delivery of social assistance to the poor.

But, according to that criterion alone, some voivodships (like Lodz) receive more than they should, indicating that other criteria are operating as well. Given these disparities, it appears that the number of unemployed. is not the best variable to use in determining the allocation of central funds. Instead, the measure should be the extent of poverty, since social assistance is concerned with the poor rather than the unemployed, who are already covered by Page xxvii unemployment benefits. Long-term unemployment, moreover, is the cause of poverty in only 16 percent of the cases, while 60 percent of Poles living in poverty are poor workers and families of poor workers.

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