Child benefits and child tax allowances in the Czech Republic, Slovak Republic and Sweden

Abstract

PurposeThe paper deals with the child benefits system in the Czech Republic, Slovak Republic and Sweden.Design/methodology/approachThe authors describe the systems as the key baseline for subsequent qualitative and quantitative comparison. An essential element is the quantitative comparison of child benefits using their statistically stationarised values.FindingsThe Czech and Slovak systems provide a comparable rate of coverage as the Swedish system regarding the payment of both types of benefits, i.e. child benefits and tax allowances, for the first and second child; however, from the third child, the individual differences are considerable. Albeit the concepts of Czech and Slovak systems are framed by the same historical origins and conceptual approach, they differ significantly, with Slovakia providing the lowest aggregate level of child benefits.Originality/valueThe paper provides insight into the child benefit systems in the respective countries. These systems are at the centre of attention of policymakers who are attempting to maintain birth rates and reduce child poverty. The Czech Republic has the lowest level of at-risk-of-poverty rates for persons under 16 years of age, while natality rates are comparable.