Childhood-Related Policies and Adult Poverty: Evidence from Some European Countries
Living in poverty may have long-run negative effects. The interaction between families and public policies is crucial as it affects a child’s opportunities. The aim of this paper is to check whether public policies implemented during individuals’ childhood have a long-run effect in the probability of being poor in adulthood, net of personal and family characteristics. We consider two specific childhood-related public spending programs capturing different mechanism through which public policies might affect poverty: in primary education and in family allowances. We find that an increase in public spending in education accounts for a sizeable reduction in the incidence of poverty in adulthood. On the contrary, expenditure on family allowances does not have any impact on adult poverty status.
Publisher URL: https://link.springer.com/article/10.1007/s11205-018-2019-8