IDEAS home Printed from https://ideas.repec.org/p/aia/ginidp/49.html
   My bibliography  Save this paper

GINI DP 49: The Fiscalization of Child Benefits in OECD Countries

Author

Listed:
  • Ferrarini, T. (Tommy)
  • Nelson, K. (Kenneth)
  • Höög, H. (Helena)

Abstract

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. ...

Suggested Citation

  • Ferrarini, T. (Tommy) & Nelson, K. (Kenneth) & Höög, H. (Helena), 2012. "GINI DP 49: The Fiscalization of Child Benefits in OECD Countries," GINI Discussion Papers 49, AIAS, Amsterdam Institute for Advanced Labour Studies.
  • Handle: RePEc:aia:ginidp:49
    as

    Download full text from publisher

    File URL: https://www1.feb.uva.nl/aias/DP49-Ferrarini_Nelson_Hoog.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. O'Donoghue, Cathal & Sutherland, Holly, 1999. "Accounting for the Family in European Income Tax Systems," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(5), pages 565-598, September.
    2. repec:esr:chaptr:jacb200671 is not listed on IDEAS
    3. Castles, Francis G., 2004. "The Future of the Welfare State: Crisis Myths and Crisis Realities," OUP Catalogue, Oxford University Press, number 9780199273928.
    4. repec:bla:econom:v:63:y:1996:i:250:p:s163-74 is not listed on IDEAS
    5. Barrett, Alan & Coleman, Kieran & Delaney, Liam & Fahey, Tony & Gannon, Brenda & Kearney, Ide & McCarthy, Yvonne & Nolan, Brian & Walsh, John R., 2006. "Budget Perspectives 2007," Research Series, Economic and Social Research Institute (ESRI), number BMI192 edited by Callan, Tim.
    6. 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 of Labor Economics (IZA).
    7. Kenneth Nelson, 2004. "Mechanisms of Poverty Alleviation," LIS Working papers 372, LIS Cross-National Data Center in Luxembourg.
    8. 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.
    9. Lane Kenworthy, 1998. "Do Social-Welfare Policies Reduce Poverty? A Cross-National Assessment," LIS Working papers 188, LIS Cross-National Data Center in Luxembourg.
    10. Korpi, Walter & Palme, Joakim, 2003. "New Politics and Class Politics in the Context of Austerity and Globalization: Welfare State Regress in 18 Countries, 1975–95," American Political Science Review, Cambridge University Press, vol. 97(3), pages 425-446, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Figari, Francesco & Biagetti, Marco & Ferri, Valentina & Marsiglia, Salvatore, 2022. "Simulazione dell’Assegno Unico Universale: i benefici della misura e gli effetti redistributivi," Centre for Microsimulation and Policy Analysis Working Paper Series CEMPA8/22, Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paetzold, Jörg, 2012. "The Convergence of Welfare State Indicators in Europe: Evidence from Panel Data," Working Papers in Economics 2012-4, University of Salzburg.
    2. Jon Olaskoaga-Larrauri & Ricardo Aláez-Aller & Pablo Díaz-de-Basurto, 2010. "Retrenchment or Resilience? New Evidence on Relative Social Expenditure Trends," Environment and Planning C, , vol. 28(5), pages 923-942, October.
    3. Mehmet F. Aysan & Roderic Beaujot, 2009. "Welfare Regimes for Aging Populations: No Single Path for Reform," Population and Development Review, The Population Council, Inc., vol. 35(4), pages 701-720, December.
    4. Olof B ckman, 2005. "Welfare States, Social Structure and the Dynamics of Poverty Rates: A Comparative Study of 16 Countries, 1980-2000," LIS Working papers 408, LIS Cross-National Data Center in Luxembourg.
    5. Caminada, Koen & Goudswaard, Kees & Koster, Ferry, 2010. "Social Income Transfers and Poverty Alleviation in OECD Countries," MPRA Paper 27345, University Library of Munich, Germany.
    6. Chrysa Leventi & Holly Sutherland & Iva Valentinova Tasseva, 2016. "Improving poverty reduction in Europe: what works (best) where?," ImPRovE Working Papers 16/16, Herman Deleeck Centre for Social Policy, University of Antwerp.
    7. Vincent Mahler, 2006. "Electoral Turnout and Income Redistribution by the State: A Cross-National Analysis of the Developed Democracies," LIS Working papers 455, LIS Cross-National Data Center in Luxembourg.
    8. Dingeldey, Irene, 2009. "Activating labour market policies and the restructuring of welfare and state: a comparative view on changing forms of governance," Working papers of the ZeS 01/2009, University of Bremen, Centre for Social Policy Research (ZeS).
    9. Obinger, Herbert & Starke, Peter, 2014. "Welfare state transformation: Convergence and the rise of the supply side model," TranState Working Papers 180, University of Bremen, Collaborative Research Center 597: Transformations of the State.
    10. Elsässer, Lea & Rademacher, Inga & Schäfer, Armin, 2015. "Cracks in the foundation: Retrenchment in advanced welfare states," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 16(3), pages 4-16.
    11. Olivier Bargain & Karina Doorley, 2009. "In-work transfers in good times and bad - simulations for Ireland," Working Papers 200930, School of Economics, University College Dublin.
    12. Elizabeth Thomson & Trude Lappegård & Marcia Carlson & Ann Evans & Edith Gray, 2014. "Childbearing Across Partnerships in Australia, the United States, Norway, and Sweden," Demography, Springer;Population Association of America (PAA), vol. 51(2), pages 485-508, April.
    13. Manuela Arcanjo, 2009. "The Reform of Unemployment Protection Insurance, 1993-2007: the Erosion of Legislated Rights in France, Germany, Portugal and Spain," Working Papers Department of Economics 2009/01, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    14. Marx, Ive & Nolan, Brian & Olivera, Javier, 2014. "The Welfare State and Anti-Poverty Policy in Rich Countries," IZA Discussion Papers 8154, Institute of Labor Economics (IZA).
    15. Brady, David & Lee, Hang Young, 2014. "The rise and fall of government spending in affluent democracies, 1971-2008," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(1), pages 56-79.
    16. Kevin Leicht & David Brady, 2007. "Party to Inequality: Right Party Power and Income Inequality in Affluent Western Democracies," LIS Working papers 460, LIS Cross-National Data Center in Luxembourg.
    17. Wim Van Lancker & Natascha Van Mechelen, 2014. "Universalism under siege? Exploring the association between targeting, child benefits and child poverty across 26 countries," Working Papers 1401, Herman Deleeck Centre for Social Policy, University of Antwerp.
    18. Lyle Scruggs & James Allan, 2005. "The Material Consequences of Welfare States: Benefit Generosity and Absolute Poverty in 16 OECD Countries," LIS Working papers 409, LIS Cross-National Data Center in Luxembourg.
    19. Mathew Y. H. Wong, 2013. "Median Voter and Power Resources Revisited: A Composite Model of Inequality," LIS Working papers 584, LIS Cross-National Data Center in Luxembourg.
    20. Jon Olaskoaga-Larrauri & Ricardo Aláez-Aller & Pablo Díaz-de-Basurto, 2010. "Measuring is Believing! Improving Conventional Indicators of Welfare State Development," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 96(1), pages 113-131, March.

    More about this item

    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:aia:ginidp:49. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Wiemer Salverda (email available below). General contact details of provider: https://edirc.repec.org/data/aiuvanl.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.