IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/vkr6h.html
   My bibliography  Save this paper

The impact of "Family 500+" programme on household incomes, poverty and inequality

Author

Listed:
  • Brzezinski, Michal
  • Najsztub, Mateusz

Abstract

We use the microsimulation approach and household budget survey data from 2015 to estimate the short-term impact of the “Family 500+” programme on household incomes, poverty and inequality. The results suggest that the programme will have the strongest impact on the incomes of households at the lower end of income distribution. Extreme consumption poverty in the whole population is reduced in the range from 35 to 37%, while child poverty in the range from 75 to 100%, depending on the choice of equivalence scale and assumptions about changes in household expenditures. The paper shows also that the programme will reduce the Gini index of income inequality in Poland by a few percentage points. The programme can lead to a lower risk of extreme poverty for households with children as compared to small households (e.g. single-person households). Analysis based on certain equivalence scales suggests that even before the implementation of the “Family 500+” programme extreme poverty among households with children was comparable or lower than among one-person or childless households. The progressive impact of “Family 500+” programme on income distribution in Poland may be reduced in the longer run if labour market activity of low income households will be affected negatively.

Suggested Citation

  • Brzezinski, Michal & Najsztub, Mateusz, 2021. "The impact of "Family 500+" programme on household incomes, poverty and inequality," SocArXiv vkr6h, Center for Open Science.
    • Handle: RePEc:osf:socarx:vkr6h
    DOI: 10.31219/osf.io/vkr6h
    as

    Download full text from publisher

    File URL: https://osf.io/download/602a0e3823238303149d9452/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/vkr6h?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Morawski, Leszek & Myck, Michal, 2010. "'Klin'-ing up: Effects of Polish tax reforms on those in and on those out," Labour Economics, Elsevier, vol. 17(3), pages 556-566, June.
    2. 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.
    3. repec:diw:diwwpp:dp1315 is not listed on IDEAS
    4. Pedro Carneiro & Katrine V. Løken & Kjell G. Salvanes, 2015. "A Flying Start? Maternity Leave Benefits and Long-Run Outcomes of Children," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 365-412.
    5. Anna Aizer & Shari Eli & Joseph Ferrie & Adriana Lleras-Muney, 2016. "The Long-Run Impact of Cash Transfers to Poor Families," American Economic Review, American Economic Association, vol. 106(4), pages 935-971, April.
    6. Peter Haan & Michal Myck, 2007. "Apply with Caution: Introducing UK-Style In-Work Support in Germany," Fiscal Studies, Institute for Fiscal Studies, vol. 28(1), pages 43-72, March.
    7. Michal Myck & Anna Kurowska & Michal Kundera, 2013. "Financial support for families with children and its trade-offs: balancing redistribution and parental work incentives," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 13(2), pages 59-83, December.
    8. Haan, Peter & Wrohlich, Katharina, 2011. "Can child care policy encourage employment and fertility?: Evidence from a structural model," Labour Economics, Elsevier, vol. 18(4), pages 498-512, August.
    9. Malgorzata Kalbarczyk-Steclik & Rafal Mista & Leszek Morawski, 2017. "Subjective equivalence scale – cross-country and time differences," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 44(8), pages 1092-1105, August.
    10. John Bishop & Andrew Grodner & Haiyong Liu & Ismael Ahamdanech-Zarco, 2014. "Subjective poverty equivalence scales for Euro Zone countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 265-278, June.
    11. Michal Myck & Mateusz Najsztub, 2015. "Data and Model Cross-validation to Improve Accuracy of Microsimulation Results: Estimates for the Polish Household Budget Survey," International Journal of Microsimulation, International Microsimulation Association, vol. 8(1), pages 33-66.
    12. Diego Collado & Bea Cantillon & Karel Van den Bosch & Tim Goedemé & Dieter Vandelannoote, 2016. "The end of cheap talk about poverty reduction: the cost of closing the poverty gap while maintaining work incentives," ImPRovE Working Papers 16/08, Herman Deleeck Centre for Social Policy, University of Antwerp.
    13. Thesia I. Garner & Kathleen Short, 2005. "Personal Assessments of Minimum Income and Expenses: What Do They Tell Us about 'Minimum Living' Thresholds and Equivalence Scales?," Working Papers 379, U.S. Bureau of Labor Statistics.
    14. Goraus Tanska,Karolina Marta & Inchauste Comboni,Maria Gabriela, 2016. "The distributional impact of taxes and transfers in Poland," Policy Research Working Paper Series 7787, The World Bank.
    15. Leszek Morawski, 2016. "Regulacyjna skala ekwiwalentności dla gospodarstw domowych w Polsce w latach 2006–2014," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5, pages 71-89.
    16. Bargain, Olivier B. & Morawski, Leszek & Myck, Michal & Socha, Mieczyslaw, 2007. "As SIMPL As That: Introducing a Tax-Benefit Microsimulation Model for Poland," IZA Discussion Papers 2988, Institute of Labor Economics (IZA).
    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. Adam Szulc, 2022. "Reconstruction of the Social Cash Transfers System in Poland and Household Well-being: 2015 - 2018 Evidence," KAE Working Papers 2022-076, Warsaw School of Economics, Collegium of Economic Analysis.
    2. Barbara Liberda & Katarzyna Sałach & Marek Pęczkowski, 2023. "The Effects of Child Benefit on Household Saving," Journal of Family and Economic Issues, Springer, vol. 44(2), pages 447-460, June.
    3. Sadowski, Arkadiusz & Samoląg, Monika, 2020. "Functioning of the Family 500+ program on a selected example of rural areas," Rural Areas and Development, European Rural Development Network (ERDN), vol. 17.
    4. Wędrowska Ewa & Muszyńska Joanna, 2021. "The Impact of Family and Child-Allowances on Income Inequality in Poland. Gini Decomposition by Income Sources," Folia Oeconomica Stetinensia, Sciendo, vol. 21(1), pages 144-160, June.

    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. Michał Myck & Kajetan Trzciński, 2019. "From Partial to Full Universality: The Family 500+ Programme in Poland and its Labor Supply Implications," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(03), pages 36-44, October.
    2. Brzeziński, Michał & Myck, Michal & Najsztub, Mateusz, 2019. "Reevaluating Distributional Consequences of the Transition to Market Economy in Poland: New Results from Combined Household Survey and Tax Return Data," IZA Discussion Papers 12734, Institute of Labor Economics (IZA).
    3. Michal Myck & Anna Kurowska & Michal Kundera, 2013. "Financial support for families with children and its trade-offs: balancing redistribution and parental work incentives," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 13(2), pages 59-83, December.
    4. repec:diw:diwwpp:dp1315 is not listed on IDEAS
    5. Konopczak, Karolina & Skibicki, Jakub, 2012. "Mikrosymulacyjny model podatkowo-zasiłkowy Ministerstwa Finansów – dokumentacja," MF Working Papers 33, Ministry of Finance in Poland.
    6. Michal Myck & Mateusz Najsztub, 2015. "Data and Model Cross-validation to Improve Accuracy of Microsimulation Results: Estimates for the Polish Household Budget Survey," International Journal of Microsimulation, International Microsimulation Association, vol. 8(1), pages 33-66.
    7. Leszek Morawski & Aneta Semeniuk, 2013. "Zakres ubóstwa a reformy podatkowo-świadczeniowe w latach 2006-2010," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 21-40.
    8. Nicardo S. McInnis & Katherine Michelmore & Natasha Pilkauskas, 2023. "The Intergenerational Transmission of Poverty and Public Assistance: Evidence from the Earned Income Tax Credit," NBER Working Papers 31429, National Bureau of Economic Research, Inc.
    9. Kalbarczyk Małgorzata & Miazga Agata & Nicińska Anna, 2017. "The Inter-Country Comparison of the Cost of Children Maintenance Using Housing Expenditure," Statistics in Transition New Series, Polish Statistical Association, vol. 18(4), pages 687-699, December.
    10. George Bulman & Robert Fairlie & Sarena Goodman & Adam Isen, 2021. "Parental Resources and College Attendance: Evidence from Lottery Wins," American Economic Review, American Economic Association, vol. 111(4), pages 1201-1240, April.
    11. Angela Daley & Thesia Garner & Shelley Phipps & Eva Sierminska, 2020. "Differences across countries and time in household expenditure patterns: implications for the estimation of equivalence scales," International Review of Applied Economics, Taylor & Francis Journals, vol. 34(6), pages 734-757, November.
    12. Fabel, Marc, 2021. "Maternity leave and children's health outcomes in the long-term," Journal of Health Economics, Elsevier, vol. 76(C).
    13. Barbara Liberda & Katarzyna Sałach & Marek Pęczkowski, 2023. "The Effects of Child Benefit on Household Saving," Journal of Family and Economic Issues, Springer, vol. 44(2), pages 447-460, June.
    14. Leszek Morawski, 2009. "Efekty wprowadzenia dwóch stóp w podatku dochodowym od osób fizycznych w 2009 roku," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 7-8, pages 37-58.
    15. Anna Kurowska & Michał Myck & Katharina Wrohlich, 2017. "Making work pay: increasing labour supply of secondary earners in low income families with children," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 11(2), June.
    16. Gordon Dahl & Katrine Loken, 2024. "Families, Public Policies, and the Labor Market," RF Berlin - CReAM Discussion Paper Series 2423, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    17. Iga Magda & Aneta Kiełczewska & Nicola Brandt, 2018. "The "family 500+" child allowance and female labour supply in Poland," OECD Economics Department Working Papers 1481, OECD Publishing.
    18. Martina Mysíková & Tomáš Želinský & Michaela Jirková & Jiří Večerník, 2021. "Equivalence Scale and Income Poverty: Two Approaches to Estimate Country-specific Scale for the Czech Republic," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(1), pages 21-45, July.
    19. Rolf Aaberge & Ugo Colombino, 2014. "Labour Supply Models," Contributions to Economic Analysis, in: Handbook of Microsimulation Modelling, volume 127, pages 167-221, Emerald Group Publishing Limited.
    20. Kurowska, Anna & Myck, Michal & Wrohlich, Katharina, 2012. "Family and Labor Market Choices: Requirements to Guide Effective Evidence-Based Policy," IZA Discussion Papers 6846, Institute of Labor Economics (IZA).
    21. Mathias Huebener & Daniel Kuehnle & C. Katharina Spiess, 2017. "Paid Parental Leave and Child Development: Evidence from the 2007 German Parental Benefit Reform and Administrative Data," Discussion Papers of DIW Berlin 1651, DIW Berlin, German Institute for Economic Research.

    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:osf:socarx:vkr6h. 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: OSF (email available below). General contact details of provider: https://arabixiv.org .

    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.