Arbeitspapier

Political economy of redistribution between traditional and modern families

We analyse a model in which families may either be “traditional” single-earner with caring for the child at home or “modern” double-earner households using market child care. Family policies may favour either the one or the other group, like market care subsidies vs. cash for care. Policies are determined by probabilistic voting, where allocative and distributional impacts matter, both within and across groups. Due to its impact on intragroup distribution, both types of households are likely to receive subsidies. In early stages of development where most households are traditional, implemented policies favour them, though to a small extent. Net subsidies to traditional households are highest in some intermediate stage, which may explain the implementation of cash for care policies. Such policies will be tightened again in late stages of development, where the vast majority of voters come from modern households. Finally, in an environment in which many traditional households are not entitled to vote (immigrants who have not yet obtained citizenship), redistribution toward them may be abolished and in extreme cases even replaced by net transfers to modern households.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 7658

Classification
Wirtschaft
Household Production and Intrahousehold Allocation
Taxation and Subsidies: Efficiency; Optimal Taxation
Fertility; Family Planning; Child Care; Children; Youth
Demographic Economics: Public Policy
Time Allocation and Labor Supply
Subject
redistribution
child care
subsidies
family policy
labour supply

Event
Geistige Schöpfung
(who)
Meier, Volker
Rablen, Matthew D.
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2019

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Meier, Volker
  • Rablen, Matthew D.
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2019

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