Skip to content

Research Paper Social Situation Observatory Research Notes 2/2012

The distributive and cross country effects of a Child Basic Income for the European Union

Authors

Publication date

Nov 2012

Summary

 
This paper explores the within and between country distributional implications of an illustrative Child Basic Income (CBI) operated and funded at EU level. Using EUROMOD, we establish that a universal payment of €50 per month per child aged under 6 could take 800,000 children in this age group (and their families) out of poverty and would close the poverty gap of those remaining below the threshold by 6%. It could be financed by an EU flat tax of 0.2% on all household income, assuming that it would also be taxed nationally (as the mother’s earned income).
Between countries, the scheme would redistribute income away from richer member states and those with fewer children towards poorer ones and those with more children. Most member states and virtually all families with children aged under 6 would be net gainers. In general, fiscal flows between member states, and also poverty reduction, would be smaller under an EU CBI that was adjusted for purchasing power differences across countries.

Subjects

Young People, Poverty, Welfare Benefits, and Microsimulation

Links

http://ec.europa.eu/social/keyDocuments.jsp?policyArea=&type=0&country=0&year=2012&advSearchKey=holly+sutherland&mode=advancedSubmit&langId=en

Notes

PDF held by Research Library - see Library staff


Related publications

  1. Simulating the costs and benefits of a Europe-wide Basic Income scheme for Children

    Horacio Levy, Manos Matsaganis, and Holly Sutherland

    1. Young People
    2. Welfare Benefits
    3. Microsimulation
    4. Taxation
    5. Social Policy
  2. Towards a European Union Child Basic Income? Within and between country effects

    Horacio Levy, Manos Matsaganis, and Holly Sutherland

    1. Young People
    2. Poverty
    3. Microsimulation
    4. Taxation
  3. Towards a European Union Child Basic Income? Within and between country effects

    Horacio Levy, Manos Matsaganis, and Holly Sutherland

    1. Young People
    2. Welfare Benefits
    3. Microsimulation
    4. Taxation

#521281


Research home

Research home

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest