Social Benefits and the Feedback Effect of Child Poverty
Working paper
Highlights
This paper examines how social benefits contributed to reducing the scarring effects of monetary poverty among children in European countries in the years following the Great Recession. Based on the European Union Statistics on Income and Living Conditions database, our findings highlight that social benefit functions differ in their ability to reduce the risk of monetary poverty for children with previous experience in poverty. While family/children’s benefits are crucial in reducing child poverty in general, they are not significant in terms of reducing the scarring effects of child poverty. Old age/ survivors’ benefits meanwhile appear to be a significant support for children with prior experience in poverty. Empirical evidence thus suggests the effectiveness of social transfers to combat occasional child poverty does not always coincide with their effectiveness in preventing children from remaining in poverty year after year.
