Child policy changes and estimation of income distribution effects

The paper explores the household income distribution effects of recent changes in social benefit policy for families with children in Romania. The particular changes we examine are the amount growth of the main social benefit for children – the universal state allowance for children – and the increa...

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Main Authors: Eva MILITARU, Amalia CRISTESCU
Format: Article
Language:English
Published: General Association of Economists from Romania 2017-06-01
Series:Theoretical and Applied Economics
Subjects:
Online Access: http://store.ectap.ro/articole/1277.pdf
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author Eva MILITARU
Amalia CRISTESCU
author_facet Eva MILITARU
Amalia CRISTESCU
author_sort Eva MILITARU
collection DOAJ
description The paper explores the household income distribution effects of recent changes in social benefit policy for families with children in Romania. The particular changes we examine are the amount growth of the main social benefit for children – the universal state allowance for children – and the increase of income threshold and benefit amount for the support allowance for families with children, an important means-tested social benefit. Our approach relies on ex-post impact evaluation of policy changes through income simulation using microdata at household level. We studied the effects within specific groups of families based on number of children, but we also estimated the effects on single-parent families. The results show that recent changes have contributed to the reduction of income inequalities in general by increasing the income level at the bottom and median of the income distribution. Larger families experience higher relative income growth, as the benefits are linked with family size and their pre-reform income levels are lower.
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spelling doaj.art-7a54e9f6e12246f994ade047bb0a08c12022-12-21T18:01:55ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292017-06-01XXIV218719618418678Child policy changes and estimation of income distribution effectsEva MILITARU0Amalia CRISTESCU1 National Scientific Research Institute for Labour and Social Protection, Romania National Scientific Research Institute for Labour and Social Protection, Romania<br> The Bucharest University of Economic Studies, Romania The paper explores the household income distribution effects of recent changes in social benefit policy for families with children in Romania. The particular changes we examine are the amount growth of the main social benefit for children – the universal state allowance for children – and the increase of income threshold and benefit amount for the support allowance for families with children, an important means-tested social benefit. Our approach relies on ex-post impact evaluation of policy changes through income simulation using microdata at household level. We studied the effects within specific groups of families based on number of children, but we also estimated the effects on single-parent families. The results show that recent changes have contributed to the reduction of income inequalities in general by increasing the income level at the bottom and median of the income distribution. Larger families experience higher relative income growth, as the benefits are linked with family size and their pre-reform income levels are lower. http://store.ectap.ro/articole/1277.pdf income distributionfamily benefitstax-benefit systemmicrosimulationhouseholds
spellingShingle Eva MILITARU
Amalia CRISTESCU
Child policy changes and estimation of income distribution effects
Theoretical and Applied Economics
income distribution
family benefits
tax-benefit system
microsimulation
households
title Child policy changes and estimation of income distribution effects
title_full Child policy changes and estimation of income distribution effects
title_fullStr Child policy changes and estimation of income distribution effects
title_full_unstemmed Child policy changes and estimation of income distribution effects
title_short Child policy changes and estimation of income distribution effects
title_sort child policy changes and estimation of income distribution effects
topic income distribution
family benefits
tax-benefit system
microsimulation
households
url http://store.ectap.ro/articole/1277.pdf
work_keys_str_mv AT evamilitaru childpolicychangesandestimationofincomedistributioneffects
AT amaliacristescu childpolicychangesandestimationofincomedistributioneffects