Childhood Poverty and Family Policy

Anne, a Swede currently residing in Oregon, writes about the cost of childcare in the US and the (negative) consequences for families and especially women. A job may pay $9 / hour but (licensed, authorised) childcare costs $15 / hour so you're better off just staying home. Even if you have a more advanced and thus higher paid job, $15 / hour doesn't make a huge difference when it comes to an incentive to work. Anne says that "You get what you pay for is something you often hear, in different contexts. It is considerably greater differences between what's good and what's bad [quality] so you'd better be careful. [sic] USA is the country with the best, most modern and luxarious but also the worst you can find. Everything is about money, no subsidies, discounts or support systems exist. Everything depends on how much you are willing to pay, you get what you pay for."

This week I attended several really interesting meetings on this very topic (at research institutions SOFI, CHESS and the Institute for Futures Studies). Some of the findings of international studies:

• There is a strong correlation between poverty rate and generosity of family provisions*

This means that countries with generous family policies have lower child poverty rates. And especially family policies that support dual earner families (i.e. families where both parents are working).

• Support promoting dual earner families is more efficient than support promoting traditional family patterns

This means that

• The poverty relieving effect of dual earner support works both via benefits and market income. I.e. the contribution may be direct through the amount of benefits paid, or indirect by supporting two earners and thereby raising the market income of the household.

While

• The support to traditional family patterns works only via benefits

Other important factors are

• Access to childcare

This includes extensive, accessible, affordable and high quality childcare (pre-school).

Another interesting - and strong - correlation is that between family policy generosity and infant mortality, i.e. generous family provisions lead to low infant mortality.

• What drives this development is strong dual earner support (e.g. childcare provisions).

I'm not going to bore you with all the tables and graphs but I think you get the gist from the above bullet points!

* Family provisions are policies such as tax deductions for families/parents (double or single parent households), parental leave/allowances, child allowances, right to and compensation for staying at home with a sick child, etc.