Nr 1 (13) 2017
Social Policy
CHILD BENEFIT PROGRAMME 500+ OUTCOMES AND OUTPUTS
Table of Contents 1/2017 English Edition
FROM THE EDITORS – Elżbieta Bojanowska, Kazimierz W. Frieske
IS THE 500+ CHILD BENEFIT PROGRAMME OVERGENEROUS? POLISH SOCIAL PROTECTION EXPENDITURE ON BENEFITS AND SERVICES FOR FAMILIES WITH CHILDREN COMPARED WITH OTHER MEMBER COUNTRIES OF THE EU AND OECD – Krzysztof Hagemejer
COMBATING POVERTY THROUGH FAMILY CASH BENEFITS. ON THE FIRST RESULTS OF THE PROGRAMME “FAMILY 500+” IN POLAND – Stanisława Golinowska, Agnieszka Sowa-Kofta
THE 500+ CHILD BENEFIT SCHEME AND SOCIAL WELFARE IN POLAND – Elżbieta Bojanowska
THE IMPACT OF “FAMILY 500+” PROGRAMME ON HOUSEHOLD INCOMES, POVERTY AND INEQUALITY – Michał Brzeziński, Mateusz Najsztub
EFFECT OF CHILD CARE BENEFIT (500+) ON POVERTY BASED ON MICROSIMULATION – Ryszard Szarfenberg
INFLUENCE OF THE 500+ PROGRAMME ON THE POLISH LABOUR MARKET. WHAT IS, WHAT WILL BE WHAT TO EXPECT… – Elżbieta Kryńska
CHILD CARE BENEFIT 500+ AS COMPONENT OF LOCAL KNOWLEDGE: ATTEMPT TO GET INSIGHT – Kinga Pawłowska
THE “FAMILY 500+” PROGRAMME: POTENTIAL IMPACT ON DEMOGRAPHIC PROCESSES, THE LABOUR MARKET AND THE PENSION SYSTEM – Maria Pierzchalska
ABOUT AUTHORS
Elżbieta Bojanowska (PhD, Cardinal Stefan Wyszyński University, Warsaw, Poland)
Kazimierz W. Frieske (Professor, Institute Labour and Social Studies, Warsaw, Poland)
FROM THE EDITORS (p. 1)
It is not excluded that over a dozen or so years the ongoing discussions about the 500+ child support benefit – certainly one of the key social programs of the last quarter-century – will become a material based on which students of social sciences will have the opportunity to analyse the problems resulting from thinking that prompts us to seek simple cause-effect relationships and try to explain the various social phenomena with one independent variable.
Unfortunately, what we usually consider to be the result of introducing of some – supposedly – change-inducing stimulus into the social reality is in fact the result of a complex system of many different factors, which all influence, to different degrees, the above mentioned result, i.e. our dependent variable. The public opinion expects a simple message from the speaker – for example – that the 500+ child support benefit results in the reduction in the rate of poverty or in the decrease in the cost of social assistance, but after all, such regularities are conditional. Much depends on the situation on the labour market, the dynamics of wage growth, etc. Some sceptical opinions on the child support benefit were predicting its dramatic impact on the labour market It turned out, however, that the claim on the demotivating nature of the 500+ child support benefit was referring to simplified and – as it turned out – unreliable intuitions rooted in the old, constantly repeated rhetoric, according to which people’s entry into the labour market is primarily driven by the economic constraint. It is easy, after all, to claim that at least part of the workers whose families receive this benefit have not retired from the labour market, but “have been retired” – replaced by migrant workers willing to work for less money.
We should therefore humbly admit that the temptation to appear in public discussions leads to a continuous reduction of the complexity of social realities, and also to ignoring the fact that while the families do think rationally, making their economic decisions, but this rationality is “bounded”, determined by the realities of place and time. Hence, it is worth remembering that whoever interprets, too hasty and / or based on undisclosed assumptions, the simple coexistence of phenomena as a simple sequence of causes and effects is wrong.
The conclusion would therefore be that: even though – guided by rational thinking – we do not fully understand the complexity of functioning of the “Family 500+” program; it is however clear that its correlates are at least encouraging – regardless of what is said about its differentiated impact on the situation of Polish families.
Krzysztof Hagemejer (Professor, International Centre for Research and Analysis ICRA, Poland)
IS THE 500+ CHILD BENEFIT PROGRAMME OVERGENEROUS? POLISH SOCIAL PROTECTION EXPENDITURE ON BENEFITS AND SERVICES FOR FAMILIES WITH CHILDREN COMPARED WITH OTHER MEMBER COUNTRIES OF THE EU AND OECD (p. 1–7)
The recent introduction of cash family benefit programme “500+” ignited debate on the desired levels of expenditure on family benefits and of overall social protection expenditure in Poland. The objective of the paper is to inform this debate through comparing levels of family benefit expenditure in Poland with the levels in other European Union and OECD countries. Analysis of the available data shows that Polish overall gross social protection expenditure – measured as its ratio to GDP – is significantly lower than the EU average and, after 2000, has been declining slightly (while EU average of this ratio has tended to increase). Expenditure on old-age, survivors’, and disability pensions is (as a percentage of GDP) not much lower than the EU average (although, after taking into account the impact of direct taxation, the difference between expenditure levels in Poland compared to other countries becomes much greater). At the same time, expenditure on health, unemployment, and family benefits has over the last 15 years been at significantly lower levels than levels prevailing in a majority of EU countries. Until 2015, family benefit expenditure in Poland was – as a percentage of GDP – significantly lower than the EU average. Expenditure on cash benefits in 2012 was 0.7%, which was a decline from 1% of GDP in 2000 and much less than the EU average of 1.6%. Since 2013, cash family benefit expenditure has been increasing faster than GDP, surpassing 0,8% of GDP in 2015. The introduction of 500+ more than doubled the expenditure to GDP ratio so that in 2016 it was 1.85% of GDP and one can estimate that in 2017, expenditure on all types of cash family benefits will surpass 2% of GDP. As expenditure on non-cash aspects of family benefits (benefits in kind like kindergartens and tax breaks for children) are not much lower in Poland than the EU average, programme 500+ raises overall social protection expenditure on family and children to about 3% of GDP which is slightly over the EU average but still lower than several higher spending countries in this area – UK, Scandinavian countries, France or Belgium for example. One has to bear in mind that imitations of data quality and availability and differences between countries both in terms of policy instruments used by social protection systems and differences of the extent to which various social benefits are affected by direct and indirect taxation, require caution when drawing conclusions from above comparison of expenditure levels.
Keywords: family benefits, social protection, social expenditure
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Agnieszka Sowa-Kofta (PhD, Institute Labour and Social Studies, Warsaw, Poland)
COMBATING POVERTY THROUGH FAMILY CASH BENEFITS. ON THE FIRST RESULTS OF THE PROGRAMME “FAMILY 500+” IN POLAND (p. 7–13)
The article is devoted to the analysis of the preliminary results of the “Family 500+” cash benefit introduced in Poland in the second quarter of 2016. The results are considered on a theoretical and comparative basis from the point of view of the politically declared objectives of the cash benefit, especially the radical reduction of child poverty and the improvement of fertility. The analysis is based on the BBGD unit data (2015 and 2016), EU-SILC data, including 2016, and data from the OECD database (Family Database). Preliminary results show that the 500+ benefit succeeded in reducing income poverty in many families, improving the structure of consumption for the needs of the whole family, but, at the same time, increased the tendency of mothers to leave the labour market, which is a phenomenon that had already started in Poland before the implementation of the 500+ benefit.
Keywords: child poverty, material deprivation, cash benefits, fertility, family friendly policy
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Elżbieta Bojanowska (PhD, Cardinal Stefan Wyszyński University, Warsaw, Poland)
THE 500+ CHILD BENEFIT SCHEME AND SOCIAL WELFARE IN POLAND (p. 13–15)
The Act of 11 February 2016 on state aid in raising children introduced the right to untaxed child benefits of PLN 500 per month, which is granted to each second and subsequent child until they are 18 years of age. This benefit is an investment that is intended to increase human capital and support families in ensuring their children’s safety and favourable conditions for raising children, and thus aims to reduce the phenomenon of child poverty.
Keywords: child benefit 500+, family, poverty, social assistance, social work
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Michał Brzeziński (Professor, University of Warsaw, Poland)
Mateusz Najsztub (Master, Centre for Economic Analysis, Szczecin, Poland)
THE IMPACT OF “FAMILY 500+ PROGRAMME ON HOUSEHOLD INCOMES, POVERTY AND INEQUALITY (p. 16–25)
We use the microsimulation approach and household budget survey data from 2015 to estimate the shortterm impact of the “Family 500+” programme on household incomes, poverty and inequality. The results suggest that the programme will have the strongest impact on the incomes of households at the lower end of income distribution. Extreme consumption poverty in the whole population is reduced in the range from 35 to 37%, while child poverty in the range from 75 to 100%, depending on the choice of equivalence scale and assumptions about changes in household expenditures. The paper shows also that the programme will reduce the Gini index of income inequality in Poland by a few percentage points. The programme can lead to a lower risk of extreme poverty for households with children as compared to small households (e.g. single-person households). Analysis based on certain equivalence scales suggests that even before the implementation of the “Family 500+” programme extreme poverty among households with children was comparable or lower than among one-person or childless households. The progressive impact of “Family 500+” programme on income distribution in Poland may be reduced in the longer run if labour market activity of low income households will be affected negatively.
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Ryszard Szarfenberg (Professor, Institute of Social Policy, University of Warsaw, Poland)
EFFECT OF CHILD CARE BENEFIT (500+) ON POVERTY BASED ON MICROSIMULATION (p. 25–31)
Child care benefit (500+) is a new cash instrument of family policy introduced in Poland in 2016. There were a lot of discussions on many respects of the new benefit. One of them is expected impact on child, family and total poverty. In the first part I described goals of family policy and the 500+ in comparison to family benefits. Second part contains critical examination of official justification of 500+ in the light of a theory of poverty reduction by cash benefits. In the main part I presented shortly microsimulation models and results of three of them (Ministry of Finance, World Bank and European Commission). It is likely that 500+ impact on overall poverty and child and family poverty in financial dimension will be impressive. In the result the change of the structure of poverty risk in Poland can be substantial.
Keywords: family benefits, child allowances, poverty, microsimulation, child poverty, 500+
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Elżbieta Kryńska (Professor, Institute of Labour and Social Policy, Warsaw, Poland)
INFLUENCE OF THE 500+ PROGRAMME ON THE POLISH LABOUR MARKET. WHAT IS, WHAT WILL BE AND WHAT TO EXPECT… (p. 31–36)
The aim of this paper is to identify the likely impact of one of the family policy instruments in Poland, the “Family 500+” programme. The analyses were focused on the supply side of the labour market. The demand side, without neglecting it, was treated as one of the determinants of labour supply. As we are still lacking in reliable research, as far as comprehensive research in this area is concerned, the analysis is based on the knowledge contained in the source literature and the research experience of the author. The article presents elements of family policy in Poland, factors determining the number of labour resources and their professional activity, the programme “Family 500+” and its influence on the Polish labour market in the short term, as well as the probable impact in the medium term.
Keywords: family 500+, labour market, family policy, work resources, professional activity
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Kinga Pawłowska (PhD, Warsaw University of Technology, Warsaw, Poland)
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The paper is about child allowance (500+), a new family benefit introduced in Poland in 2016. In the public sphere there is a lot of discussions connected with this new benefit, but most of them present the specialist’s points of view. The main goal of this paper is different, it present the elements of ”local knowledge”, the local points of view: people who benefit from the social system because of their difficult financial situation and people who work in the local public institutions and observe the impact of the new child allowance on the poor people everyday life. In the paper there are presented the qualitative research results. Conclusions are ambiguous and complicated – in the respondent’s opinions we can observe both the advantages and the disadvantages of the new child allowance (500+).
Keywords: child allowance, poverty, „local knowledge”, local points of view
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Maria Pierzchalska (PhD, European Social and Technical School in Radom, Poland)
THE “FAMILY 500+” PROGRAMME: POTENTIAL IMPACT ON DEMOGRAPHIC PROCESSES, THE LABOUR MARKET AND PENSION SYSTEM (p. 42–50)
The “500+ Family” programme, which runs from mid-2016, is the opening of a new chapter in Polish family policy. It is the response of the government to the demographic crisis caused by the mass emigration of young people and the low birth rate, which is due to the rapidly increasing number of people in retirement age, resulting in aging society. The main objective of the program is to create conditions conducive to having and raising children, resulting in a reversal of the unfavourable demographic trend to increase the fertility rate. The program is also an investment in human capital and reduction of poverty among families with children. The assumed population growth and the transformation of the family model depends on changes in the workplace, which are primarily the responsibility of women. The barriers to participation of women in the labour market, such as the lack of flexibility in working time, inequality in earnings, the inability to reconcile work and family responsibilities, and the fear of professional inactivity. This deprives them of both the independence as well as the ability to selffulfilment or loss of previous competences. The consequence of this will be the loss of the right to a fair old-age pension as a result of the non-payment of insurance premiums for future retirement. The introduction of the 500 Plus program causes of necessity of changes in the economic and social policies of the state.
Keywords: “500+ family” programme, family, family policy, female labour market, seniority, pensions for women
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List of Contributions
Elżbieta Bojanowska – doctor of sociology, social politician, assistant professor at the Institute of Sociology of the Cardinal Stefan Wyszyński University in Warsaw; Undersecretary of State at the Ministry of Family, Labour and Social Policy. Main areas of research: population ageing and its socioeconomic consequences, intergenerational relations and problems related to poverty and social exclusion.
Michał Brzeziński – is an Adjunct Professor at the Faculty of Economic Sciences University of Warsaw where he teaches history of economics and political economics. His research interests include modelling income and wealth distribution, measurement of poverty and inequality, happiness economics and economic policy in Poland. His publications are found in journals such as Economic Systems, Empirical Economics, Journal of Applied Econometrics, Physica A, Applied Economics, Economics Letters, Scientometrics, and Social Indicators Research.
Stanisława Golinowska – Professor at the Jagiellonian University Medical College, Cracow, and at the Institute for Labour and Social Studies, Warsaw. She has led and participated in many scientific Polish and European projects about social policy and public health, particularly on poverty, ageing, disability and long-term care, especially oriented on Central and Eastern European issues.
Krzysztof Hagemejer – PhD, professor at Bonn-Rhein-Sieg University of Applied Sciences, Germany. Lecturer at Collegium Civitas, Warsaw and Maastricht Graduate School of Governance. Economist, specializing in economics and financing of social policies. Between 1993 and 2014 at Social Protection Department of the International Labour Organisation in Geneva, 2013–2014 Chief of Social Protection Policy, Standards and Governance Branch. Key member of the team working on new international labour standard, Recommendation no 202 concerning National Floors of Social Protection, adopted by the International Labour Conference in 2012. Before joining the ILO, assistant professor at the Department of Economics of Warsaw University and adviser to the Polish Minister of Labour and Social Policy.
Elżbieta Kryńska – Professor Krynska works at the University of Lodz, where she is a Director of Department of Economic Policy, and in the Institute of Labour and Social Studies, where she is a Head of Department of Employment and Labour Market. Her professional interests are focused on contemporary labour markets issues. She is a well-known expert in the area of socio-economic policy, in particular within labour market issues. She has participated in many seminars and conferences, presenting results of research studies. She is an author of about 300 research papers and books. Professor Krynska has been a project manager in many national and international research projects.
Mateusz Najsztub – has been working as an analyst in Centre for Economic Analysis, CenEA in Szczecin since 2013. He obtained his Master’s Degree in Chemistry from the Adam Mickiewicz University in Poznań in 2011. In his work at CenEA he focuses mainly on the SIMPL and EUROMOD microsimulation models that provide the opportunity to analyse direct effects of tax and benefit policy reforms on household disposable income. Apart from keeping the model up to date he also is involved in technical maintenance including data correction and weight adjustments. He also works with results of the SHARE 50+ survey, where he focuses on analysing social exclusion among 50+ population.
Kinga Pawłowska – is a sociologist and anthropologist. Since 2008 she has worked as an Assistant Lecturer, and since 2015 as an Associate Professor at the Faculty of Administration and Social Sciences at the Warsaw University of Technology. Her scholarly interests are diverse, yet they concentrate mainly around the issues of social policy, inheriting of poverty, sociology and anthropology of organization, power in organization and critical management studies. She is an author of a few articles, and co-author of monographic works and handbooks. She has participated in the projects on social economy and the processes of inheriting poverty. Now, she carry out the project on power in organization.
Maria Pierzchalska – A graduate of the Faculty of Law and Administration at the University of Warsaw. From 1991 PhD in economics from the Faculty of Economics and Social Sciences at the Warsaw School of Economics. Since 1977 she was an employee of the Social Insurance Institution in Radom. In 1991 she became director of Social Insurance Institution in Radom. Since 1995 she has been rector of the several Universities in Radom. She is an author of several publications on social security and social policy. She is a organizer and co-organizer of numerous scientific conferences, founder of the “Open Hearts” Foundation and the Polish Social Insurance Association in Radom. Founder and rector of the European University Radom-Warsaw.
Agnieszka Sowa-Kofta – Assistant Professor at the Institute of Labour and Social Studies and expert of the Center for Social and Economic Research – CASE Foundation. Her research interests focus on social protection policy, including poverty, inequalities, health and long-term care. She has been participating in numerous national and international research projects.
Ryszard Szarfenberg – PhD in political sciences, employed at the Warsaw University in the Institute of Social Policy, main research areas are poverty, social exclusion and social assistance, reviewer at the International Journal of Social Welfare.
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