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Lessons for Family Policy – Central Results of the Ex-Post-Evaluation of Monetary Family Related Benefits in Germany

Holger Bonin, Anita Fichtl, Helmut Rainer, C. Katharina Spieß, Holger Stichnoth, Katharina Wrohlich
ifo Institut, München, 2013

ifo Schnelldienst, 2013, 66, Nr. 18, 22-30

The “Ex-Post-Evaluation of Monetary Family Related Benefits in Germany” commissioned by the German federal government represented the first systematic and comprehensive evaluation of central instruments of German family policy. The following family policy goals were set: the safeguarding of the economic stability of families, the improved compatibility of family and career, the early advancement of children, the fulfillment of children’s wishes and the compensation for disadvantages between families. The overall review of the results of the evaluation studies conducted by the DIW Berlin, Ifo and the ZEW highlights one outstanding measure that does not involve any family-policy target conflicts; namely the public financing of children’s care. There should be greater investment in this area, with parental participation continuing as to date and used to improve the quality of child care. Parental benefit hardly causes any target conflicts either; and should thus be further developed to provide more incentives for the division of work between partners. Scope for financial flexibility could also be achieved via a reform of the spousal joint tax declaration in favour of capped real splitting. Due to the relatively weak effects of parental benefit on the goals analysed, an increase in this benefit should be targeted.

JEL Classification: J120, J130, H240, H310

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ifo Institut, München, 2013