LOCAL SOCIAL BENEFITS IN CROATIA: HOW MUCH DO THEY ADDRESS THE POVERTY RISKS AND NEEDS OF FAMILIES WITH CHILDREN?

Family policies and their impact on the well-being of families are a frequent topic of research. However, local social benefits are the least researched of such policies. This paper aims to explore the extent to which the most important cash and in-kind local social benefits offered by the Croatian capital Zagreb and by the country’s three largest cities (Split, Rijeka and Osijek) cover the costs of child-rearing and reduce child poverty. Using microsimulation techniques, the support provided to families with children is estimated, and the distributional impact of these policies is assessed. The results reveal that local benefits greatly complement central government policies and substantially increase support for families but with differences among cities; the policies of Zagreb and Rijeka prove to be the most generous and effective, followed by those of Split and Osijek. The main limitations of this study come from the use of microsimulation models: the assumption of full benefit take-up for some policies and the lack of simulation for other policies due to a lack of data. This is the first comprehensive study of family benefits at the central and local government levels in Croatia.