Publications

In the context of increasing child poverty, deprivation rates and the relative child income gap, and with the most economically vulnerable children hit extensively by the crisis (Chzhen 2014), this paper sets out to understand who are the most disadvantaged children. Analysis of the composition of the children at the bottom end of the income distribution illustrates that households with a lone parent, at least one migrant member, low work intensity, low education, or in large families are overrepresented in the first decile to different degrees in European countries. The analyses also reveal immense differences in living standards for children across Europe. In European countries included in the analyses, at least 1 in 5 children in the poorest decile lives in a deprived household.  A closer look at the different dimensions of deprivation at the child-specific level, reveals what living in the poorest decile means for children’s everyday life.

Understanding how household consumption, investment and saving decisions respond to transfer income is critical to public policy. In developing countries, saving or otherwise investing in the future is difficult for poor households which often struggle to meet basic expenses, while high debt burdens are also obstacles to saving. Poor households in rural areas of developing countries typically manage risk via informal exchanges or transfers among extended family, friends and neighbours. Motivated by the community dynamics observed in the qualitative assessment of LEAP and the unpredictable and lumpy payments made by the programme during the evaluation period, the main interest of this paper is to assess within a quantitative framework the impact of LEAP on household risk reduction strategies via reintegration in, and strengthening of, social networks and reduction of debt exposure.

The literature review mainly focuses on studies from the 1990s on developing countries. Available evidence seems to indicate that short modules underestimate consumption with respect to longer ones resulting in lower levels of recorded consumption and therefore less accurate estimates and higher poverty rates. However, one of the most complete, recent and authoritative studies in the field (Beegle et al., 2010) finds that short modules may actually result in a smaller downward bias compared to the benchmark than other longer consumption modules.

This paper presents and discusses child relative income poverty statistics for 35 economically advanced countries, representing all the members of the European Union, Australia, Canada, Iceland, Japan, New Zealand, Switzerland and the United States. As most of the data refer to the year 2008, the results partly reflect the initial impact of the global economic crisis as well as government responses. According to the data, Nordic countries and the Netherlands present the lowest child relative poverty levels, while Japan, the United States, most of the Southern European countries and some of the new EU member states have among the highest. Several factors are associated with the risk of poverty, such as demographic composition, educational level of household members, labour conditions, but the extent to which these factors influence the risk of poverty vary considerably across countries. Lastly, in several countries the role of government is found to be highly important in reducing child poverty.