Search

This article is not an attempt to provide a comprehensive analysis of all the major aspects of the efficiency-equity nexus in Serbia in economic and social policy. Rather, it presents our main thesis that, at least in the present Serbian context, the equity-efficiency trade-off is not really relevant. We argue that, explicitly or implicitly, applying policies tailored in favour of the worse-off in labour, welfare and education would simultaneously improve both the efficiency and the equity of the Serbian economy. Our main contribution is progressive income taxation, which favours not only the equity factor but also the competitiveness of the economy. In addition, we argue that spending more on social assistance and less on public sector salaries would reduce poverty but also reduce the queues of members of the labour force attracted by the winner-takes-all allure. Restructuring spending on education so that teachers get relatively less and students relatively more would, again, be a socially-desirable outcome, simultaneously enhancing the efficiency of the education system. [ABSTRACT FROM AUTHOR]