The Role of Cash Benefit and In-Kind Benefit Spending for Child Poverty in Times of Austerity: An Analysis of 22 European Countries 2006–2015

This article investigates the development of two forms of public spending on families, as well as their role for child poverty in 22 European countries during the period 2006–2015. It uses aggregated data on child poverty from Eurostat and data relating to public spending on families from the OECD SOCX database. It analyses the association between child poverty and public family spending on cash benefits and in-kind benefits, respectively. The findings show a stable growth in the GDP-related and real levels of spending on both cash benefits and benefits in kind, although spending on cash benefits have been more exposed to cost containment than spending on inkind benefits. Furthermore, spending on benefits in kind was found to be more efficient for curbing child poverty than spending on cash benefits, even after controlling for unemployment, family structure, the general standard of living, as well as welfare institutional configurations. However, the efficiency of public family spending declined over the studied period. Moreover, the relative significance of public family spending for child poverty, in comparison to structural factors (such as unemployment), varied according to which spending measure that was used.