Differences in Child Deprivation Across Europe: The Role of In-Cash and In-Kind Transfers

Abstract

Child deprivation has severe short-term as well as life-long consequences for children experiencing it. Using the new child-specific deprivation indicator adopted by the European Union in 2018 and computed from the EU Statistics on Income and Living Conditions dataset, the paper analyses the determinants of child deprivation in 31 European countries. It applies negative binomial multilevel models, which combine household-level and country-level variables. The latter include various macro-level variables that are new to the deprivation literature. The results show the combined impact of factors related to “household’s longer-term command over resources” and factors explaining “household needs”. Regarding the role of the welfare state and social transfers in child deprivation, the paper highlights the impact of cash benefits, which operates through household income, and of in-kind benefits, which decrease a household’s needs and increase household’s resources. Another important conclusion is that the provision of affordable education reduces child deprivation, as it can mitigate the cost burden faced by parents. In terms of policy implications, the paper shows the importance of investing in social protection and public services in order to reduce child deprivation.