IDEAS home Printed from https://ideas.repec.org/p/oec/elsaab/135-en.html

Money or Kindergarten? Distributive Effects of Cash Versus In-Kind Family Transfers for Young Children

Author

Listed:
  • Michael Förster

    (OECD)

  • Gerlinde Verbist

    (University of Antwerp)

Abstract

Public support to families with pre-school children can be in the form of cash benefits (e.g. child allowances) or of “in-kind” support (e.g. care services such as kindergartens). The mix of these support measures varies greatly across OECD countries, from a cash / in-kind composition of 10%/90% to 80%/20%. This paper imputes the value of services into an “extended” household income and compares the resulting distributive patterns and the redistributive effect of these two strands of family policies. On average, cash and in-kind transfers each constitute 7 – 8% of the incomes of families with young children. Both instruments are redistributive. Cash transfers reduce child poverty by one third, with the estimated impacts in Austria, Ireland, Sweden, Hungary and Finland performing above average. When services are accounted for, child poverty falls by one quarter and poverty among children enrolled in childcare is more than halved. This reduction is highest in Belgium, France, Hungary, Iceland and Sweden. L’aide publique aux familles ayant des enfants en âge préscolaire peut prendre la forme de prestations monétaires (allocations familiales, par exemple) ou en «nature» (par exemple les services de garde tels que les jardins d'enfants). La combinaison de ces mesures de soutien varie considérablement selon les pays de l'OCDE, d’une composition monétaire / ou en « nature » allant de 10%/90% à 80%/20%. Ce document attribue la valeur des services à un revenu « élargi » des ménages et compare les facteurs distributifs résultant et l’effet redistributif de ces deux volets de la politique familiale. En moyenne, les transferts monétaires et en nature constituent chacun 7- 8% des revenus des familles ayant des enfants en bas âge. Les deux instruments sont redistributifs. Les transferts monétaires réduisent la pauvreté infantile d'un tiers, et les effets estimés sont en-dessus de la moyenne en Autriche, Irlande, Suède, Hongrie et en Finlande. Lorsque les services sont pris en compte, la pauvreté infantile chute d'un quart et la pauvreté chez les enfants inscrits dans les services de garde est divisée par deux. Cette réduction est la plus élevée en Belgique, en France, en Hongrie, en Islande et en Suède.

Suggested Citation

  • Michael Förster & Gerlinde Verbist, 2012. "Money or Kindergarten? Distributive Effects of Cash Versus In-Kind Family Transfers for Young Children," OECD Social, Employment and Migration Working Papers 135, OECD Publishing.
  • Handle: RePEc:oec:elsaab:135-en
    DOI: 10.1787/5k92vxbgpmnt-en
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Volker Ziemann, 2015. "Towards more gender equality in Austria," OECD Economics Department Working Papers 1273, OECD Publishing.
    2. Rense Nieuwenhuis & Teresa Munzi & Jörg Neugschwender & Heba Omar & Flaviana Palmisano, 2019. "Gender Equality and Poverty are Intrinsically Linked," LIS Working papers 759, LIS Cross-National Data Center in Luxembourg.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:elsaab:135-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/eloecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.