The Redistributive Role of Child Benefits Revisited

Tomer Blumkin, Yoram Margalioth and Efraim Sadka

No 275798, Foerder Institute for Economic Research Working Papers from Tel-Aviv University > Foerder Institute for Economic Research

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 being accorded on a universal basis.

Keywords: Consumer/Household Economics; Financial Economics (search for similar items in EconPapers)
Pages: 30
Date: 2014-01
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Persistent link: https://EconPapers.repec.org/RePEc:ags:isfiwp:275798

DOI: 10.22004/ag.econ.275798

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