Child Allowances and Work-Family Reconciliation Policies: What Best Reduces Child Poverty and Gender Inequality While Enabling Desired Fertility?

Recent legislative proposals in the United States to either institute a child allowance for all families or continue a temporary Covid-related child tax credit similar to an allowance have reignited a debate about family allowances, and whether direct monetary subsidies to families with minor children have unintended consequences for gender inequality and mothers’ labor market success. Advocates for work-family reconciliation policies argue that policies providing paid time off and flexibility in work hours and schedule should enable women to assume financial responsibility for their children and, thus, increase intended fertility without diminishing the quality of care provided to children, while encouraging men to participate more in the domestic sphere. We summarize the limited but growing evidentiary basis for both policy viewpoints, reviewing hundreds of studies on policy implementation and outcomes across rich industrialized countries, comparing the results in terms of their effects on child poverty, gender inequality, and intended fertility.