Public policies supporting families with children across welfare regimes: An empirical assessment of six European countries

Abstract

Public policies supporting families with children differ among countries but with the same goal of improving the well-being of children. Using a microsimulation model, this article assesses the cash support which families receive for their children in Croatia, Greece, Germany, the Slovak Republic, Sweden and the United Kingdom. The impact of policies across the income distribution on different family sizes, child-rearing cost compensation and child poverty is estimated. A method for the calculation of child-contingent payments for each child by order of birth in the family is proposed as a complementary indicator of policy design. The results confirm that a combination of universal and targeted support (either from family or social assistance benefits) is the most effective in poverty reduction and cost compensation. While high support for larger families greatly reduces poverty, generous universal or even lower support for large families has proved to be at least equally effective.