Adrian Hernandez Martin - The extent and distribution of cash support to children in Spain for over a decade

  • Presenting author: Adrian Hernandez Martin (JRC - European Commission)

  • Authors: Adrian Hernandez, Fidel Picos

  • Session: A02A - Dynamic / Long term [1] - Monday 16:30-18:00 - Ceremonial Hall

  • Slides: PDF

Tax-benefit systems complement the primary role of families in raising children by providing them with cash support. This helps not only to cover the expenses associated with raising children, but it is recognized in the literature for its significant redistributive effects. Family benefits stand out as the most progressive transfer in most OECD countries (Joumard et al., 2013). Nevertheless, a comprehensive measurement of cash support for children requires considering all tax-benefit instruments available for families with children, including not only family benefits but also tax reliefs. Building upon the seminal work of Figari et al. (2011), we capitalize on the use of a tax-benefit microsimulation model for widely measuring the extent and distribution of all cash support contingent upon having children. Our focus extends to exploring its redistributive effects, with particular emphasis on the two main levers of redistribution: progressivity and average transfer size, while assessing the interplay between the two dimensions. We conduct the analysis for Spain, a country typically characterized by high child poverty, high inequality levels, and low fertility rates. Our study spans for over more than a decade of profound socioeconomic changes (2005-2022), including two significant economic crises with long-lasting consequences and multiple policy changes in this area. Through this case study, we aim at better understanding the redistributive outcomes of cash support for children.