scholarly journals Financial Support for Families with Children and its Trade-Offs: Balancing Redistribution and Parental Work Incentives

2013 ◽  
Author(s):  
Michal Myck ◽  
Anna Kurowska ◽  
Michał Kundera
Keyword(s):  
Financial Support ◽  
Work Incentives ◽  
Trade Offs ◽  
Parental Work ◽  
Families With Children

Book Reviews

2011 ◽  
Vol 49 (2) ◽  
pp. 453-455
Keyword(s):  
Financial Support ◽  
Child Poverty ◽  
War On Poverty ◽  
University Of Kentucky ◽  
Families With Children

James P. Ziliak of University of Kentucky reviews “Britain?€?s War on Poverty” by Jane Waldfogel. The EconLit Abstract of the reviewed work begins “Explores the story of Britain's war on child poverty and considers lessons for future antipoverty efforts both in Britain and elsewhere. Discusses one in four children living in poverty in 1999; promoting work and making work pay; increasing financial support for families with children; investing i….”

scholarly journals Incentives at the Eligibility Threshold: An Examination of Child Care Financial Assistance Policies

2009 ◽  
Vol 16 (1) ◽  
pp. 3
Author(s):  
Teresa M. Derrick-Mills
Keyword(s):  
Child Care ◽  
Social Services ◽  
Current System ◽  
Development Fund ◽  
Dependent Care ◽  
Trade Offs ◽  
Eligibility Requirements ◽  
Families With Children ◽  
The Cost ◽  
Phase Out

For families with children, employment comes at a price. They must subtract from their wages the cost of someone else caring for their child. Their wage minus the costs of obtaining child care, transportation, and other expenses that may be generated by employment is generally referred to as the effective wage. The Child Care Development Fund (CCDF) child care subsidy voucher, the Earned Income Tax Credit (EITC), and the Child and Dependent Care Credit (CDCC) are all intended to increase the effective wage of parents to support them entering and staying in the workforce. This paper explores the trade-offs between employment and effective wage that parents must make through the lens of three hypothetical North Carolina families facing promotion, bonus, and employer relocation opportunities. Through their eyes we understand why it would be rational to turn down these opportunities due to the potential loss of thousands of dollars in benefits. These situations demonstrate the weaknesses of the current system, where the needs of employers and employees become increasingly opposed as families approach the income eligibility threshold and the portability threshold. This paper proposes a policy to better align the needs of employers and employees by restructuring the incentive system to phase out benefits gradually, guarantee help to anyone who is eligible, make support sensitive to regional changes in child care prices, and administer it through the tax system rather than local social services offices throughout the country. While this paper focuses on the child care benefit system, the framework used to explore the issues of reversed incentives at the eligibility threshold can be applied to any social policy with income eligibility requirements.

POPULATION GROWTH AS AN INDISPENSABLE CONDITION FOR LABOUR MARKET FORMATION

2020 ◽  
pp. 57-60
Author(s):  
T.V. Grigorova ◽  
◽  
N.V. Laykova ◽  
Keyword(s):  
Economic Development ◽  
Financial Support ◽  
Birth Rate ◽  
Statistical Data ◽  
Demographic Situation ◽  
Market Formation ◽  
First Child ◽  
Demographic Processes ◽  
Families With Children ◽  
Low Birth Rate

This article examines the problem of relationship between demography and economy and presents statistical data that characterize the demographic processes in Russia since 1997. The population is considered as the labor, the number and structure of which largely determines the economic development of the country. Authors explore the reasons for the low birth rate of the population and the outflow of people from sparsely populated areas and show the dynamics of international migration. It is shown that financial support is needed not only for families with children, but also for those young people who are planning the birth of their first child. It is specified that only state investments, correct and consistent policy can change the current demographic situation.

The impact of in-work benefits on work incentives and poverty in four European countries

2020 ◽  
Vol 30 (2) ◽  
pp. 144-157 ◽  
Author(s):  
Dieter Vandelannoote ◽  
Gerlinde Verbist
Keyword(s):  
Labour Supply ◽  
Order Effects ◽  
Work Incentives ◽  
Eu Member States ◽  
Specific Effects ◽  
Trade Offs ◽  
Design Characteristics ◽  
International Comparative ◽  
The Impact ◽  
The Empirical Analysis

This article studies the impact of design characteristics of in-work benefits on labour supply and poverty in an international comparative setting, taking account of both first-order (without taking labour supply effects into account) and second-order effects (taking labour supply effects into account). We use the microsimulation model EUROMOD, which has been enriched with a structural discrete choice labour supply model to take account of labour supply reactions. The analysis is performed for four EU member states: Belgium, Italy, Poland and Sweden. The results show that design characteristics matter substantially, though the specific effects differ in magnitude across countries, indicating there is no one-size-fits-all solution. Throughout the analysis, numerous trade-offs are uncovered: not only between work incentives and poverty goals, but also within work incentives themselves. Taking account of behavioural reactions attenuates the impact on poverty outcomes, signalling the importance of bringing these effects into the empirical analysis.

The Design of In-work Benefits

2018 ◽  
pp. 244-268 ◽  
Author(s):  
Dieter Vandelannoote ◽  
Gerlinde Verbist
Keyword(s):  
Labor Supply ◽  
Poverty Reduction ◽  
Work Incentives ◽  
Intensive Margin ◽  
Stepwise Manner ◽  
Trade Offs ◽  
Design Changes ◽  
The Impact ◽  
The Way

This chapter focuses on the impact of the design of in-work benefits on work incentives and poverty reduction. Focusing on one country, Belgium, microsimulation techniques are used to study stylized design changes in a stepwise manner, examining in each step which characteristics of an in-work benefit “make it work.” As this study makes clear, both the size and design matter. Sufficient budget is needed to reach significant changes in outcomes, while the exact specifications of the way in which the benefit is designed are crucial. The results show some trade-offs between employment and poverty objectives, as well as between labor-supply outcomes at the extensive and the intensive margin. For the Belgian context, an individual-based system that uses hourly wages as a threshold seems to reconcile both work incentives and poverty outcomes in a satisfactory way.

scholarly journals The Employment Effects of Recession on Couples in the UK: Women's and Household Employment Prospects and Partners’ Job Loss

2011 ◽  
Vol 40 (4) ◽  
pp. 675-693 ◽  
Author(s):  
SUSAN HARKNESS ◽  
MARTIN EVANS
Keyword(s):  
Job Loss ◽  
Labour Force ◽  
Working Women ◽  
Women's Movements ◽  
Work Incentives ◽  
The United Kingdom ◽  
Part Time ◽  
The Uk ◽  
Families With Children ◽  
The Impact

AbstractThe effect that the 2008/09 recession has had on unemployment and, in particular, on the distribution of job losses across households is of key concern to policymakers. During the 1991 recession rising male unemployment was associated with a sharp increase in the number of workless households, with this polarisation of work between ‘work-rich’ and ‘work-poor’ persisting many years later. Part of the reason for this polarisation was that the design of the tax and benefit system produced weak work incentives for women partnered to unemployed men, particularly if the jobs open to them were either part time or low paid. Since 1999, the United Kingdom has undertaken reform of employment and transfer programmes, with a particular focus on boosting incomes and work incentives for families with children. The resulting literature focussed on the impact that these reforms had on women's movements into employment. Since the economy entered recession in 2008, an increasingly important question is how have these reforms affected women's decisions to remain in employment (or enter into work) if their partner becomes unemployed. This paper usesLabour Force Surveydata to assess the effect of male job loss on their partners' employment and to examine the implications for the distribution of jobs across households. Results suggest that working women whose partners lost their jobs in the 2008/09 recession were more likely to remain in work than before and this has helped to mediate the growth in workless couple households.

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