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Child Poverty And Child Benefits In The European Union

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Author Info
Immervoll H
Sutherland H ()
De vos K

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Abstract

Using evidence from the European Community Household Panel we find that family benefits vary in their importance to household incomes and in the prevention of child poverty across Europe. In one group of countries family benefits appear to have a significant effect on the protection of children from financial poverty. The UK and the Netherlands are both members of this group, and we use the microsimulation model EUROMOD to examine the extent to which differences in child benefits explain the very different level of child poverty in the two countries. We also explore the effect of swapping child benefit systems between the two countries and find that there is some scope for improvements in looking beyond national borders. We conclude that the poverty reduction properties of universal child benefits may be improved without resorting to means-testing or compromising the other functions of these benefits. This analysis illustrates that comparative microsimulations can be extremely informative, and provides a flavour of the potential of EUROMOD to offer valuable pointers for the direction of social policies.

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Paper provided by EUROMOD at the Institute for Social and Economic Research in its series EUROMOD Working Papers with number EM1/00.

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Date of creation: 01 Feb 2000
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Handle: RePEc:ese:emodwp:em1/00

Note: European Union, Child poverty, Child benefits, Microsimulation.
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Related research
Keywords: European Union; Child poverty; Child benefits; Microsimulation.;

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Find related papers by JEL classification:
C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Atkinson, A. B. & Bouguignon, F. & Chiappori, P. A., 1988. "What do we learn about tax reform from international comparisons? France and Britain," European Economic Review, Elsevier, vol. 32(2-3), pages 343-352, March. [Downloadable!] (restricted)
  2. Cathal O’Donoghue & Holly Sutherland, 1998. "Accounting for the Family: the Treatment of Marriage and Children in European Income Tax Systems," Innocenti Occasional Papers, Economic Policy Series iopeps98/25, UNICEF Innocenti Research Centre. [Downloadable!]
  3. Immervoll H & O'donoghue C & Sutherland H, 1999. "An Introduction To EUROMOD," EUROMOD Working Papers EM0/99, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
  4. Anthony B. Atkinson, 1998. "EMU, Macroeconomics and Children," Innocenti Occasional Papers, Economic Policy Series iopeps98/39, UNICEF Innocenti Research Centre. [Downloadable!]
  5. Gerry Redmond, 1999. "Incomes, incentives and the growth of means-testing in Hungary," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 77-99, March. [Downloadable!]
  6. Pudney, Stephen & Sutherland, Holly, 1994. "How reliable are microsimulation results? : An analysis of the role of sampling error in a U.K. tax-benefit model," Journal of Public Economics, Elsevier, vol. 53(3), pages 327-365, March. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Lietz C & Mantovani D, 2006. "Lessons From Building And Using EUROMOD," EUROMOD Working Papers EM5/06, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
  2. Sutherland H, 2001. "EUROMOD: An Integrated European Benefit Tax Model - Final Report," EUROMOD Working Papers EM9/01, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
  3. Olga Canto & Coral del Rio & Carlos Gradin, . "What helps households with children in leaving poverty?: Evidence from Spain in contrast with other EU Counries," Studies on the Spanish Economy 137, FEDEA. [Downloadable!]
  4. Tsakloglou, Panos & Papadopoulos, Fotis, 2001. "Identifying Population Groups at High Risk of Social Exclusion: Evidence from the ECHP," IZA Discussion Papers 392, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Atkinson T, 2000. "A European Social Agenda: Poverty Benchmarking And Social Transfers," EUROMOD Working Papers EM3/00, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
  6. Sutherland H, 2001. "Reducing Child Poverty In Europe: What Can Static Microsimulation Models Tell Us?," EUROMOD Working Papers EM5/01, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
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