Income assistance, marriage, and child poverty: An assessment of the Family Security Act.

Cohabitation and marriage Household decisions Income support Poverty

Journal

Economic modelling
ISSN: 0264-9993
Titre abrégé: Econ Model
Pays: England
ID NLM: 101085827

Informations de publication

Date de publication:
Jun 2022
Historique:
received: 10 06 2021
revised: 05 03 2022
accepted: 06 03 2022
entrez: 21 3 2022
pubmed: 22 3 2022
medline: 22 3 2022
Statut: ppublish

Résumé

The COVID-19 pandemic has brought about changes in key income support programs, reigniting a debate about the design of financial aid to low-income households with children. This study assesses the Family Security Act-a proposal presented by Senator Mitt Romney (R-UT) on February 4, 2021 to reform the tax/transfer system-in terms of its efficacy to achieve the stated objectives of increasing marriage rates and cutting child poverty at no cost to the government. The assessment is carried out through a structural microsimulation approach, using a dynamic model of savings, labor supply, household formation, and marital status. We find that while the plan would be highly effective at increasing marriage rates, it would reduce child poverty at the expense of increasing poverty among single-mother families and deep child poverty. Furthermore, the plan would entail a substantial cost to taxpayers. (JEL E21, H24, H31, J12).

Identifiants

pubmed: 35309015
doi: 10.1016/j.econmod.2022.105827
pii: S0264-9993(22)00073-6
pmc: PMC8919728
doi:

Types de publication

Journal Article

Langues

eng

Pagination

105827

Informations de copyright

© 2022 The Authors.

Déclaration de conflit d'intérêts

The authors declare that they have no relevant or material financial interest that related to the research described in this paper.

Références

Demography. 2004 May;41(2):189-212
pubmed: 15209037
Demography. 2004 May;41(2):213-36
pubmed: 15209038
Demography. 2015 Jun;52(3):729-49
pubmed: 26047935
Fisc Stud. 2020 Sep;41(3):549-590
pubmed: 33362311

Auteurs

Salvador Ortigueira (S)

School of Economic Sciences, Washington State University, USA.

Nawid Siassi (N)

Institute of Statistics and Mathematical Methods in Economics, TU Wien, Wiedner Hauptstrasse 8-10, 1040, Wien, Austria.

Classifications MeSH