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Distributional impacts of cash allowances for children: a microsimulation analysis for Russia and Europe

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  • Popova, Daria
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    Abstract

    This paper analyses programmes of cash allowances for children and compares their effectiveness in combating child poverty in Russia and four EU countries Sweden, Germany, Belgium and the United Kingdom. These countries are selected as representatives of alternative family policy models. Using microsimulation models (RUSMOD and EUROMOD), this paper estimates the potential gains if the Russian system were re-designed along the policy parameters of these countries and vice versa. Such an exercise rests on the idea of policy learning and provides policy relevant evidence on how a policy would perform, given different national socio-economic and demographic settings. The results confirm that the poverty impact of the program design is smaller than that of the level of spending. Other conditions being equal, the best outcomes for children are achieved by applying the mix of universal and means-tested child benefits, such as those employed by the UK and Belgium. At the same time, the Russian design of child allowances does not appear to be less effective in terms of its impact on child poverty when transferred to European countries in place of their current arrangements.

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    File URL: https://www.iser.essex.ac.uk/publications/working-papers/euromod/em2-14.pdf
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    Bibliographic Info

    Paper provided by EUROMOD at the Institute for Social and Economic Research in its series EUROMOD Working Papers with number em2-14.

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    Date of creation: 27 Jan 2014
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    Publication status: published
    Handle: RePEc:ese:emodwp:em2-14

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    1. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a Tool for Evaluating Redistribution Policies," Working Papers 20, ECINEQ, Society for the Study of Economic Inequality.
    2. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Differences in Needs and Assessment of Income Distributions," Bulletin of Economic Research, Wiley Blackwell, vol. 44(2), pages 77-124, April.
    3. Ferrera, Maurizio, 2005. "The Boundaries of Welfare: European Integration and the New Spatial Politics of Social Protection," OUP Catalogue, Oxford University Press, number 9780199284672.
    4. Beckerman, W, 1979. "The Impact of Income Maintenance Payments on Poverty in Britain, 1975," Economic Journal, Royal Economic Society, vol. 89(354), pages 261-79, June.
    5. Gabriella Conti & James J. Heckman, 2012. "The Economics of Child Well-Being," NBER Working Papers 18466, National Bureau of Economic Research, Inc.
    6. Wen-Hao Chen & Miles Corak, 2008. "Child poverty and changes in child poverty," Demography, Springer, vol. 45(3), pages 537-553, August.
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