In the context of Spain’s persistently high child poverty rate, this chapter uses microsimulation to assess the impact of implementing a Universal Child Benefit (UCB). Simulating monthly benefits of €100 and €200 per child, the analysis finds the more generous scenario would reduce the child at-risk-of-poverty rate by nearly 28% and the extreme poverty rate by 43%. The impact is most pronounced for vulnerable households, such as single-parent and large families, and also significantly reduces poverty intensity. The study estimates the gross fiscal cost at 0.8–1.6% of Gross Domestic Product and concludes that a UCB would be an effective foundational policy for Spain, offering a relevant model for other countries seeking to strengthen their social protection systems.

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Universal Child Benefits as a Tool for Poverty Reduction

  • Lucía Gorjón,
  • Gonzalo Romero,
  • Imanol Lizarraga

摘要

In the context of Spain’s persistently high child poverty rate, this chapter uses microsimulation to assess the impact of implementing a Universal Child Benefit (UCB). Simulating monthly benefits of €100 and €200 per child, the analysis finds the more generous scenario would reduce the child at-risk-of-poverty rate by nearly 28% and the extreme poverty rate by 43%. The impact is most pronounced for vulnerable households, such as single-parent and large families, and also significantly reduces poverty intensity. The study estimates the gross fiscal cost at 0.8–1.6% of Gross Domestic Product and concludes that a UCB would be an effective foundational policy for Spain, offering a relevant model for other countries seeking to strengthen their social protection systems.