The Re-distributive Role of Child Benefits Revisited

Tomer Blumkin (), Yoram Margalioth () and Efraim Sadka ()

International Tax and Public Finance, 2015, vol. 22, issue 3, 476-501

Abstract: In this paper, we reexamine the commonly invoked argument that due to the existence of a negative correlation between earning ability and family size, the latter can be used as a “tagging” device, justifying subsidizing children (via provision of child allowances) to enhance egalitarian objectives. Employing a benchmark setting where the quality–quantity paradigm holds, we show that the case for subsidizing children is far from being a forgone conclusion. We demonstrate that the desirability of subsidizing children crucially hinges on whether benefits are means-tested or are offered on a universal basis. Copyright Springer Science+Business Media New York 2015

Keywords: Child allowance; Re-distribution; Means-testing; Universal; Tagging; Optimal taxation; D6; H2; H5 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s10797-014-9327-y

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