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The Re-distributive Role of Child Benefits Revisited

Listed author(s):
  • Tomer Blumkin

    ()

  • Yoram Margalioth

    ()

  • Efraim Sadka

    ()

Registered author(s):

    In this paper, we reexamine the commonly invoked argument that due to the existence of a negative correlation between earning ability and family size, the latter can be used as a “tagging” device, justifying subsidizing children (via provision of child allowances) to enhance egalitarian objectives. Employing a benchmark setting where the quality–quantity paradigm holds, we show that the case for subsidizing children is far from being a forgone conclusion. We demonstrate that the desirability of subsidizing children crucially hinges on whether benefits are means-tested or are offered on a universal basis. Copyright Springer Science+Business Media New York 2015

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    File URL: http://hdl.handle.net/10.1007/s10797-014-9327-y
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    Article provided by Springer & International Institute of Public Finance in its journal International Tax and Public Finance.

    Volume (Year): 22 (2015)
    Issue (Month): 3 (June)
    Pages: 476-501

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    Handle: RePEc:kap:itaxpf:v:22:y:2015:i:3:p:476-501
    DOI: 10.1007/s10797-014-9327-y
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    1. Peter Diamond & Emmanuel Saez, 2011. "The Case for a Progressive Tax: From Basic Research to Policy Recommendations," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 165-190, Fall.
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    7. Alessandro Balestrino & Alessandro Cigno & Anna Pettini, 2002. "Endogenous Fertility and the Design of Family Taxation," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 9(2), pages 175-193, March.
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