The primary objective of the majority of social assistance schemes is to reduce
poverty and targeting is often considered an important tool to reach this objective
more efficiently and effectively. This paper investigates the efficiency and
effectiveness of a targeted benefit scheme that uses a hybrid form of targeting and
subject to a tight budget constraint, namely the social assistance scheme in Kosovo. In
recognition of the long-term detrimental and negative implications of child poverty,
we focus particularly on the impact on child poverty. A mixed method approach is
used to investigate both the economic and non-economic costs and implications.
Findings suggest that the social assistance scheme is highly efficient but excludes
many poor children. Poverty impacts are limited and the scheme does not resonate
well with its recipients. Policy simulations indicate that incremental budget increases
have the potential to greatly reduce child poverty when implemented hand-in-hand
with amendments to the current social assistance scheme.