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

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  • Popova, Daria

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.

Suggested Citation

  • Popova, Daria, 2014. "Distributional impacts of cash allowances for children: a microsimulation analysis for Russia and Europe," EUROMOD Working Papers EM2/14, EUROMOD at the Institute for Social and Economic Research.
  • Handle: RePEc:ese:emodwp:em2-14
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    File URL: https://www.iser.essex.ac.uk/research/publications/working-papers/euromod/em2-14.pdf
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    1. Ferrera, Maurizio, 2005. "The Boundaries of Welfare: European Integration and the New Spatial Politics of Social Protection," OUP Catalogue, Oxford University Press, number 9780199284672.
    2. Markus Jäntti & Bruce Bradbury, 1999. "Child Poverty across Industrialized Nations," LIS Working papers 205, LIS Cross-National Data Center in Luxembourg.
    3. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a tool for evaluating redistribution policies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(1), pages 77-106, April.
    4. Beckerman, W, 1979. "The Impact of Income Maintenance Payments on Poverty in Britain, 1975," Economic Journal, Royal Economic Society, vol. 89(354), pages 261-279, June.
    5. Jonathan Bradshaw & Petra Hoelscher & Dominic Richardson & *UNICEF, 2007. "Comparing Child Well-Being in OECD Countries: Concepts and methods," Papers inwopa07/38, Innocenti Working Papers.
    6. 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.
    7. Wen-Hao Chen & Miles Corak, 2008. "Child poverty and changes in child poverty," Demography, Springer;Population Association of America (PAA), vol. 45(3), pages 537-553, August.
    8. Conti, Gabriella & Heckman, James J., 2012. "The Economics of Child Well-Being," IZA Discussion Papers 6930, Institute for the Study of Labor (IZA).
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