Lucia Ferrone

Fiscal incidence analysis is the most widely used methodology to assess the distributional effects of fiscal policies. However, for 40 years, it has lacked a child lens. A child focus on the redistributive capacity of fiscal policy is increasingly important due to the disproportionate incidence of poverty among children globally. This paper provides a child-dedicated focus on fiscal incidence analysis by tracking child-relevant benefits, turning children the unit of analysis, and using multidimensional child poverty metrics. The analysis—Commitment to Equity for Children, or CEQ4C—integrates three analytical frameworks, namely, public finance, fiscal incidence analysis, and multidimensional child poverty analysis. The paper develops a proof of concept for Uganda that includes measurement, diagnostics, and a policy simulation package replicable across diverse contexts. The proof of concept confirms that CEQ4C provides a higher-resolution fiscal incidence analysis for children than the traditional fiscal incidence analysis.

The Sustainable Development Goal (SDG) target 1.2 implies that both monetary and non-monetary or multidimensional (MD) child poverty would be measured and monitored, and that the associated indicators would be defined nationally. However, very few countries routinely measure child MD poverty.

Based on nationally representative data from the Armenian Integrated Living Conditions Survey 2013/14, the study finds that 64 per cent of children under 18 are deprived in 2 or more dimensions, with a substantially higher rate in rural than in urban areas. The highest rates of deprivation are in access to utilities, quality housing and leisure activities. More than one in four children are both multidimensionally deprived and live in consumption-poor households, while more than one in three are deprived but do not live in poor households.

This study provides the first estimates of national multidimensional child deprivation rates in Bosnia and Herzegovina using the National Multiple Overlapping Deprivation Analysis (MODA) pioneered by UNICEF. Amongst the findings of the analysis, it is seen that a reduction in child poverty and deprivation may be achieved by improving both the spending power of households and the availability of services/infrastructure in local areas.