The potential of child care tax credits to reduce poverty and welfare recipiency

As more and more mothers of young children enter the work force, interest in government financing of child care grows. The chief government subsidy for child care is the child care credit in the federal Internal Revenue Code. This is a nonrefundable credit and therefore provides benefits only to those with incomes high enough to require them to pay income tax. Yet of the $ 5.5 billion spent by the federal government on child care in 1986, this program accounted for $ 3.5 billion.This paper simulates the effects of expanding the child care tax credit by (1) doubling the reimbursement rates of the current credit; (2) making the credit refundable; and (3) both making the credit refundable and increasing its value for all families with income below $ 32,000.Results suggest that these changes will have modest effects on the income and earnings of mothers, and on the poverty gap and welfare recipiency. Costs, however, differ substantially. Doubling the value of the credit is far more expensive than either making the credit refundable or making it both refundable and more generous at the bottom of the income distribution. Making the credit refundable may cost taxpayers very little by leading to increases in hours worked and concomitant reductions in welfare payments.     

The Changing Safety Net for Low-Income Parents and Their Children: Structural or Cyclical Changes in Income Support Policy?

Refundable tax credits and food assistance are the largest transfer programs available to able-bodied working poor and near-poor families in the United States, and simultaneous participation in these programs has more than doubled since the early 2000s. To understand this growth, we construct a series of two-year panels from the 1981–2013 waves of the Current Population Survey Annual Social and Economic Supplement to estimate the effect of state labor-market conditions, federal and state transfer program policy choices, and household demographics governing joint participation in food and refundable tax credit programs. Overall, changing policy drives much of the increase in the simultaneous, biennial use of food assistance and refundable tax credits. This stands in stark contrast from the factors accounting for the growth in food assistance alone, where cyclical and structural labor market factors account for at least one-half of the growth, and demographics play a more prominent role. Moreover, since 2000, the business cycle factors as the leading determinant in biennial participation decisions in food programs and refundable tax credits, suggesting a recent strengthening in the relationship between economic conditions and transfer programs.     

Child support and the postdivorce economic well-being of mothers, fathers, and children

This article provides national estimates of the current and potential impact of private child support transfers on the economic well-being of custodial and noncustodial families following marital dissolution. Mothers and children fare dramatically worse than fathers after marital dissolution; these differences, however, would be much more pronounced in the absence of private child support. Simulations of four existing child support guidelines show that substantial increases in economic well-being among mother-custody families are possible within the structure of the existing child support system, with minimal impact on poverty among nonresident fathers. Under all of these guidelines, however, custodial-mother families would continue to fare substantially worse than nonresident fathers.     

生育激励与个人所得税——理论逻辑与经验论据

中共十九大报告提出要进一步“促进生育政策和相关经济社会政策配套衔接”。在厘清税收激励生育的理论逻辑基础上,运用工资税模型,获取OECD国家对此的经验论据。结果显示,许多国家运用税收政策向有子女家庭提供正向激励,且更注重中低收入家庭。进一步分析发现,通常为符合资格条件的儿童设计相同的或递增的定额税收优惠,甚至为大规模家庭赋予额外优惠;将儿童税收宽免转化为抵免,引进收入限制和可退抵免制;单亲家庭可享受额外优惠,而已婚家庭还通过个人申报纳税、婚姻优惠、家庭申报纳税等多种举措受益。应汲取和借鉴OECD国家的成功经验,逐步构建我国“生育友好型”的税收制度。     

Taxes and the Family: The impact of the tax exemption for dependents on marital fertility

In this paper I use data from the Panel Study on Income Dynamics to examine the relationship between the dependent exemption feature of the United States federal income tax (an unambiguous subsidy to dependents) and the fertility behavior of married couples over the period 1979-1983. The exemption decreases the price of a child to a household, thus having a direct relationship to the timing and/or number of children observed in a family. Conditional logit results support this hypothesis by showing that the exemption has a positive and significant impact on the likelihood of having a birth during the period under study.     

Child care arrangements and fertility: An analysis of two-earner households

The determinants of child care arrangements and relations between child care and fertility are examined using data on two-earner households from the 1976 National Survey of Family Growth. We find that the probability of relying on market arrangements is higher among families in which the husband's income, the wife's wage, and the level of the wife's labor supply are high; these households are likely to benefit the most from subsidies to the market forms of care that are small relative to the total cost of care (e.g. the present system of tax credits). In addition, parental education, family size, child's age, race, religion, and place of residence have important influences on the choice of child care mode. When other factors are held constant, reliance on a relative for child care is positively associated with intentions to have further children among couples with infants and preschoolers.     

儿童照料与二孩生育意愿 ——来自上海的证据

本文围绕一项针对上海市育龄女性的生育意愿调查,分别使用二分和有序Logit方法分析儿童照顾对上海市育龄女性的二孩生育意愿的影响。研究发现当育龄女性能够从家庭内和社会中获得更多孩子照料的时间支持时,她们有更高的二孩生育意愿,也会伴有更明确的二孩生育规划;双独家庭能够从父辈获得更多的经济、时间上的帮助,因此他们要比单独家庭和双非家庭更愿意再生一个孩子;居住于上海市城区的女性从某种程度上更易获得孩子的照料资源,有更多的优质教育资源可供选择,因此她们的二孩生育意愿高于居住于郊区的女性。此外,本文通过是否采用了避孕措施对二孩生育的意愿程度做了进一步区分,结果发现当第一个孩子主要是由孩子父母承担照料工作的时候,女性存在二孩生育意愿的程度是最低的,祖辈照料对二孩生育意愿程度的积极影响也明显低于社会性照料,此现象在上海市户籍的女性中体现尤为明显。最后为纠正自选择偏差问题,本文使用倾向值匹配方法(PSM)进一步验证了与首孩性别相比,首孩的抚养成本与接受照料情况显然对二孩生育意愿的影响程度更大。因此,本文认为加大公共托育服务的供给、为育龄女性提供高质量的0-3岁婴幼儿社会照料支持是提高二孩生育意愿的最有效政策。     

Self-employment and providing child care

This paper considers self-employment and providing child care as occupational strategies that can lower the cost of child care. If the ability to care for one's own children while engaged in market work is important to mothers with young children, we predict that women with young children will be more likely to choose to be self-employed or to be a child care provider than women without young children. The analysis provides strong support for this hypothesis. The results show that the presence of young children is an important factor in choosing self-employment and in choosing to be a child care provider. Finally, simulations are presented which show that a woman's choice among these sectors is quite sensitive to the number and ages of her young children.     

城市社区长期照料体系的现状与问题——以上海为例

随着人口老龄化的发展,老年长期护理需求日益增强。而在现代化过程中,家庭护理功能日趋削弱,传统的老年长期护理面临严峻挑战。根据中国的社会经济发展条件,居家养老为基础的社区服务是具有普遍意义的社会化养老模式。本研究以上海为例,从服务的提供、人力资源、资金运作、照料质量等方面系统分析了城市社区长期照料服务体系的现状与特征。文章最后提出,应该通过加强人力资源的培训、完善质量监控机制、扩展日托所功能、提高政府对社会服务事业的投资、建立税务激励机制等途径推动社区长期护理社会化服务事业的进一步发展。     

Policy and non-policy economic determinants of inter-regional migration of workers in a developing country: Some new evidence based on a polytomous logit model for India

This paper utilises the framework of a Polytomous Logit Model for analysing and testing the economic behaviour of worker migrants between different regions (states) in India. The model is estimated, perhaps for the first time in India, with policy and non-policy economic variables, using 1971 Population (migration) Census data. The empirical results with regard to policy variables provide new evidence that federal transfers have resource (labour) allocation effects rather than pure income redistribution effects and that workers move from high tax regions to low tax regions. The results support the familiar Tiebout hypothesis and argue for an inter-regional migration policy for India as well as for other developing countries.     

The Pronatalist Undercurrent of the $500-per-Child Tax Credit

A review of studies which find a positive impact of tax structure on American fertility suggests this effect will increase with the tax benefits legislated by the 1997 $500-per-child tax credit. The tax credit also resembles pronatalist family allowances in other developed countries. First, however, the article investigates the intent of the tax credit, showing that key supporters hope it will increase fertility among tax-paying Americans. Lastly, the pronatalist undercurrent of the tax credit suggests that future efforts will push for further increasing the tax benefits of children in order to increase the American birth rate.     

Optimal demogrants and taxes in a federal welfare state

This paper provides a framework for the simultaneous calculation of optimal commodity and income taxes in a federal framework with demogrants. The optimal income tax rate is shown to depend on a range of demographic and economic variables. Alternative models of fiscal federalism are proposed, and their implications for optimal commodity taxes and demogrants considered. Illustrative empirical evidence on Indian data confirms sensitivity of tax magnitudes to federal specification, and to assumptions about resource transfer between the federal and provincial authorities.Much of the work in this paper was done during my visit to the Scuola Superiore, S. Anna in Pisa (Italy) in the summer of 1991. The paper was revised during my visit to the Economics Research Centre, University of Western Australia, during May/June 1992. I am grateful to the staff and students of both institutions for their hospitality. I also thank two anonymous referees for helpful remarks. The disclaimer applies.     

Endogenous fertility,endogenous lifetime and economic growth: the role of child policies

We examine the effects of child policies on both transitional dynamics and long-term demo-economic outcomes in an overlapping-generations neoclassical growth model à la Chakraborty (J Econ Theory 116(1):119–137, 2004) extended with endogenous fertility under the assumption of weak altruism towards children. The government invests in public health, and an individual’s survival probability at the end of youth depends on health expenditure. We show that multiple development regimes can exist. However, poverty or prosperity does not necessarily depend on the initial conditions, since they are the result of how a child policy is designed. A child tax, for example, can be used effectively to enable those economies that were entrapped in poverty to prosper. There is also a long-term welfare-maximising level of the child tax. We show that a child tax can be used to increase capital accumulation, escape from poverty and maximise long-term welfare also when (a) a public pay-as-you-go pension system is in place and (b) the government issues an amount of public debt. Interestingly, there also exists a couple child tax–health tax that can be used to find the second-best optimum optimorum. In addition, we show that results are robust to the inclusion of decisions regarding the child quantity–quality trade-off under the assumption of impure altruism. In particular, there exists a threshold value of the child tax below (resp. above) which child quality spending is unaffordable (resp. affordable) and different scenarios are in existence.     

关注一孩政策后续效应：老年人晚年照料意愿及其影响因素分析

伴随着迅速的社会变迁,老年人晚年照料的被期待支持者与实际支持者之间出现了些许矛盾。基于CLASS 的调查数据,对老年人晚年照料负责的主体划分为四类,分别是正式支持、子代支持、非典型自我支持和协同支持。通过交叉分析和逻辑回归发现,虽然独生子女父母和非独生子女父母认为晚年照料由正式支持来负责的比例都不高,但是独生子女父母在该项的责任认定方面明显高于非独生子女父母。相比于非独生子女父母对于子代支持责任的依赖,独生子女父母对于照料责任的认定比较分散,呈现出正式支持、子代支持、非典型自我支持和协同支持平分秋色的特点。个人基本特征、经济状况因素、健康状况因素以及生活态度因素等变量均对老年人晚年照料责任意愿的认定影响显著。     

Effects of public education and social security on fertility

Introducing a fertility decision and child care cost into an overlapping generations model with public education and social security, we examine the effects of these public policies on fertility. We show that an increase in income tax, which finances social security benefits and public investment in education, increases fertility. On the other hand, with a constant tax rate, a change in the allocation from social security benefits to public investment in education decreases fertility and, with a constant social security tax, the effect of education tax on fertility is neutral.      

The evolution in China's fertility and an analysis of population development]

There have been numerous projections on China's population at the end of century. Their differences are due to different estimations on the effects of fertility determinants. 2 simulation models have been developed, both from micro and macro levels, to estimate the population at the end of the century on the basis of 6 different fertility patterns. 3 possible options for fertility patterns are discussed. 1.) The 1 child per family option means that every couple has 1 child by the year 1989, the population of China will be 1.2 billion in the year 2000. Even if this is a ideal situation, it would not be a feasible policy, as the pressure from the rural population to have more than 1 child has been increasing in recent years. Nevertheless, it is still possible for urban couples to accept having only 1 child. Therefore, encouraging more people to have 1 child should be held as a basic policy. 2.) Under the option of 2 children per family with 2 or 3 years of spacing, the total population in the year 2000 would be 1.2 - 1.4 billion, which is unacceptable in terms of the development situation. 3.) Following a differential fertility policy towards urban, rural, and minority populations would mean that urban couples would have 1 child, rural couples whose first child is a girl or those who are in special circumstance would have 2 children. Minorities would have 2 or 3 children. AMong the above options, number 3 is more likely to be achieved in view of current socioeconomic, cultural, and demographic factors.     

Economic incentives for financial and residential independence

In this paper we examine the impact of the resources of children and of their parents on the children’s transition to residential and financial independence. Previous studies of this transition focused primarily on the impact of family structure and parent-child relationships on the decision to leave home, but much less is known about the role of economic factors in the transition to independence. Using data from the Panel Study of Income Dynamics (PSID) for the period 1968–1988, we estimate discrete-hazard models of the probability of achieving residential and financial independence. We find that the child’s wage opportunities and the parents’ income are important determinants of establishing independence. The effect of parental income changes with the child’s age. We also find some evidence that federal tax policy influences the decision to become independent, although the magnitude of this effect is quite small.     

农村50岁以上独生子女父母与子女经济互动及养老预期——基于对全国5县调查

根据对全国5县(区)抽样调查,农村50岁以上独生子女老年父母家庭有近6成空巢。尽管这些父母的大多数觉得2个及以上孩子对于养老来说更好,但依靠子女养老和多代同堂观念已大为削弱。这些家庭代际间财富流动以子女对父母反哺为主。6成独生子女父母赞成与子女分开住,即使子女今后搬到城镇住,也有近一半人明确表示不会到子女家住,但他们同时并未显示出对社会养老保障的信任,这种窘境使这些曾为人口控制做出突出贡献的老人面临严峻的养老挑战。     

Same-Sex Married Tax Filers After <Emphasis Type="Italic">Windsor</Emphasis> and <Emphasis Type="Italic">Obergefell</Emphasis>

This article provides new estimates of the number and characteristics of same-sex married couples after U.S. Supreme Court rulings in 2013 and 2015 established rights to same-sex marriage. The U.S. Department of the Treasury and the Internal Revenue Service subsequently ruled that same-sex spouses would be treated as married for federal tax purposes. Because almost all married taxpayers file joint tax returns, administrative tax records provide new information on the demographic characteristics of married same-sex couples. This study provides estimates of the population of same-sex tax filers drawn from returns filed in 2013, 2014, and 2015, using methods developed by the U.S. Census Bureau to address measurement error in gender classification. We estimate that approximately 0.48 % of all joint filers in 2015 were same-sex couples, or approximately 250,450 couples.     

The determinants of paternity establishment and child support award rates among unmarried women

This paper examines the relationships between several child support policies, paternity establishment, and child support award rates among never-married women. We use several state policies and practices in place throughout the 1980s to examine their effectiveness at increasing paternity establishment rates and at increasing the proportion of unmarried women who have child support awards. We also examine the direct relationship between paternity establishment rates and child support award rates. We estimate these relationships using a variety of specifications, using cross-state variation in child support enforcement to identify the effects of policies. To date, child support remains largely the province of state family law, and, although policies have changed dramatically in response to two decades of federal mandates, state laws and practices still vary.