Employment and fiscal effects of the inclusive universal child benefit. Microsimulation of a child benefit reform – Study and additional appendix

This study examines the economic effects of the reform proposal "Teilhabegeld", a variant of basic child benefit. The aim of this reformed cash transfer for children is to improve the material situation of families and to simplify the eligibility for benefits. The reform proposal include a consolidation of transfers for families into a single benefit for children. Various reform variants are examined in this study. In terms of disposable incomes, the reform could improve the situation for families in the lower income deciles.Depending on the level and design of the allowance, the poverty risk of children could be significantly reduced. Negative labor supply effects contribute to the high fiscal costs of the benefit reform proposal.