Towards a European Union Child Basic Income? Within and between country effects
This paper explores the within and between country distributional implications of an illustrative Child Basic Income (CBI) operated at EU level. Using EUROMOD, we establish that a universal payment of â‚¬50 per month per child aged under 6 could take 800,000 children in this age group out of poverty. It could be financed by an EU flat tax of 0.2% on all household income, assuming that it would also be taxed nationally as income. Most member states and virtually all families with children aged under 6 would be net gainers. We simulate two versions of EU CBI, with the benefit rate of â‚¬50 per month adjusted or not for differences in purchasing power between member states. In general, fiscal flows between member states, and also poverty reduction, would be smaller under the adjusted version. The political feasibility of such a scheme might be questioned, especially within the net contributor countries. Nevertheless, for those seeking ways to strengthen solidarity across national boundaries, a scheme supporting the incomes of families with young children, wherever in the EU they might reside â€œcould be a demonstration of the EUâ€Ÿs commitment to children, to the futureâ€ (EC 2012a: 62).
|Date of creation:||28 Mar 2013|
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- Sutherland, Holly & Figari, Francesco, 2013.
"EUROMOD: The European Union Tax-Benefit Microsimulation Model,"
EUROMOD Working Papers
EM8/13, EUROMOD at the Institute for Social and Economic Research.
- Holly Sutherland & Francesco Figari, 2013. "EUROMOD: the European Union tax-benefit microsimulation model," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 4-26.
- Marcus Tamm, 2010.
"Child Benefit Reform and Labor Market Participation,"
Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik),
Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 230(3), pages 313-327, June.
- Marcus Tamm, 2009. "Child Benefit Reform and Labor Market Participation," Ruhr Economic Papers 0097, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Levy, Horacio & Lietz, Christine & Sutherland, Holly, 2006.
"A basic income for Europe's children?,"
EUROMOD Working Papers
EM4/06, EUROMOD at the Institute for Social and Economic Research.
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