Financial Support for Families with Children and its Trade-offs: Balancing Redistribution and Parental Work Incentives

Arbeitspapier

Financial support for families with children implies inherent trade-offs some of which are less obvious than others. In the end these trade-offs determine the effectiveness of policy with respect to the material situation of families and employment of their parents. We analyse several kinds of trade-offs involved using a careful selection of potential changes to the system of financial support for families with children. We focus on: 1) the trade-off between redistribution of income to poorer households and improving work incentives, 2) the trade-off between improving work incentives for first and for second earners in couples, 3) the trade-off between improving work incentives for those facing strong and weak incentives in the baseline system. The exercise is conducted on data from Poland, a country characterized by high levels of child poverty, low female employment and one of the lowest fertility rates in Europe. We demonstrate the complexity of potential consequences of family support policy and stress the need for well-defined policy goals and careful analysis ahead of any reform.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 7506

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Time Allocation and Labor Supply ; Fertility; Family Planning; Child Care; Children; Youth ; Demographic Economics: Public Policy
• Thema: labour supply ; tax and benefit reforms ; microsimulation ; family policy

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Myck, Micha± ; Kurowska, Anna ; Kundera, Micha±
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2013

Weitere Informationen

• Handle: http://hdl.handle.net/10419/80522
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ