GINI DP 49: The Fiscalization of Child Benefits in OECD Countries
Welfare states have been subject to a subtle and a sometimes unrecognized transformation: the fiscalization of social benefits. This change of national policy is notable in the area of family policy, where various forms of child tax benefits have been introduced. The composition and level of child benefits varies therefore not only across countries, but also over historical time (Kamerman and Kahn, 1981; MacNicol, 1992; Wennemo, 1994; Gauthier, 1996). In the immediate Post-War period many countries either complemented or replaced various types of income-tested child benefits with universal ones, introducing a shift in the distributive profile of the system. However, far from all welfare states relied only on the principle of universalism in the design of child benefits. Child tax benefits and fiscal policy has often been used as an alternative or complement to social policy legislation. During the era of welfare state stagnation and decline since the mid-1970s some countries have relocated parts of the child benefit package from social policy to the income tax system. During this process of fiscalization, elements of income-testing have once again been introduced to child benefits, thus, adding stronger elements of vertical redistribution between socio-economic groups. The change of scenery involves not only a shift in the relative emphasis of social and fiscal policies in the redistributive budgets of the European countries, but also a greater degree of selectivity and low-income targeting is introduced to the provision of child benefits. ...
|Date of creation:||Jul 2012|
|Contact details of provider:|| Postal: Nieuwe Prinsengracht 130, 1018 VZ Amsterdam|
Web page: http://www.uva-aias.net
More information through EDIRC
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.:
- O'Donoghue, Cathal & Sutherland, Holly, 1999. "Accounting for the Family in European Income Tax Systems," Cambridge Journal of Economics, Oxford University Press, vol. 23(5), pages 565-598, September.
- Immervoll, Herwig & Pearson, Mark, 2009.
"A Good Time for Making Work Pay? Taking Stock of In-Work Benefits and Related Measures across the OECD,"
IZA Policy Papers
3, Institute for the Study of Labor (IZA).
- Herwig Immervoll & Mark Pearson, 2009. "A Good Time for Making Work Pay? Taking Stock of In-Work Benefits and Related Measures across the OECD," OECD Social, Employment and Migration Working Papers 81, OECD Publishing.
- Lerman, Robert I & Townsend, Alair A, 1974. "Conflicting Objectives in Income Maintenance Programs," American Economic Review, American Economic Association, vol. 64(2), pages 205-211, May.
When requesting a correction, please mention this item's handle: RePEc:aia:ginidp:49. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiemer Salverda)
If references are entirely missing, you can add them using this form.