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Should we change national assistance for students and their families?

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  • DUCRAY François

Abstract

In France, there are three public aids: State grants and housing vouchers for the students, an income tax deduction for the parents. Unconditional housing vouchers promote students’ self-sufficiency. State grants aim at reducing social inequalities and decline with parental income. Income tax deduction helps parents but it increases with parental income.\r\n\r\nIn 1997, a French parliamentarian (Cieutat) emphasized the students’ aid U form. The public aid per student (housing voucher + State grant + income tax deduction) decreases with parental income, reaches a minimum for the middle class and rises beyond. The middle class is not rather poor to gain State grants. The middle class is not rather rich to profit income tax deduction entirely. Authorities created new grant levels and decided successively to peak income tax deduction.\r\n\r\nDoes students’ aid U form still exist?\r\n\r\nSchedules simulations show U form persistence. Grants’ threshold is another problem. We propose a new State grants scale which is continuous and a finance plan.

Suggested Citation

  • DUCRAY François, 2015. "Should we change national assistance for students and their families?," Cahiers du GREThA (2007-2019) 2015-23, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    • Handle: RePEc:grt:wpegrt:2015-23
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    File URL: http://cahiersdugretha.u-bordeaux.fr/2015/2015-23.pdf
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    References listed on IDEAS

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    1. Roland Bénabou & Jean Tirole, 2006. "Belief in a Just World and Redistributive Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 699-746.
    2. François-Charles Wolff, 2012. "Les parents sont-ils vraiment si peu altruistes ?," Revue économique, Presses de Sciences-Po, vol. 63(2), pages 315-337.
    3. Gabrielle Fack, 2005. "Pourquoi les ménages pauvres paient-ils des loyers de plus en plus élevés ? [L’incidence des aides au logement en France (1973-2002)]," Économie et Statistique, Programme National Persée, vol. 381(1), pages 17-40.
    4. Akay, Alpaslan & Bargain, Olivier & Dolls, Mathias & Neumann, Dirk & Peichl, Andreas & Siegloch, Sebastian, 2012. "Happy Taxpayers? Income Taxation and Well-Being," IZA Discussion Papers 6999, Institute of Labor Economics (IZA).
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    More about this item

    Keywords

    students; public grant schedule.;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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