Unequal Giving: Monetary Gifts to Children Across Countries and Over Time

Money parents give their adult children may be important for the financing of a child's education or a first home, relaxing binding credit constraints or responding to a transitory income shock. Financial transfers however, may extend economic disparities across generations if the wealthy transfer considerable resources to their children while middle class and poor households do not. In this paper, we first examine annual gifts of money from parents to adult children in the United States and ten European countries using the 2004 waves of the Health and Retirement Study (HRS) and Survey of Health, Ageing and Retirement in Europe (SHARE). Second, utilizing the long panel of the HRS, we study the long-run behavior of parental monetary giving to children across families and within a family. We found that in all countries, some parents gave money to children, many did not, the amount was low, about 500 Euros annually per child, and varied by parental socio-economic status and public social expenditures. In the short term, parents in the U.S. gave money to a child to compensate for low earnings or satisfy an immediate need such as schooling. Over sixteen years, parents gave an average of about $38,000 to all their children, five percent gave over$140,000 and gave persistently. With time, the amount of money children in the same family received became more equal and a child's level of education was one of the few remaining sources of differences in money given to children. Overall, the annual amount of money parents gave adult children in any country was not enough to affect the distribution of resources within or between families in the next generation although the timing of transfers for schooling or housing may have a significant impact on an individual child. Annual parental transfers for college age children in school in the U.S. were substantially higher than average transfers to all children. The effect of parental transfers for higher education on intergenerational mobility in the U.S. will depend in part upon whether this financing is essential in the schooling decision.transfers

Markets, breastfeeding and trade in mothers' milk

This introduction to a special issue on the economics of breastfeeding draws attention to the lack of economic justice for women. Human milk is being bought and sold. Commodifying and marketing human milk and breastfeeding risk reinforcing social and gender economic inequities. Yet there are potential benefits for breastfeeding, and some of the world’s poorest women might profit. How can we improve on the present situation where everyone except the woman who donates her milk benefits? Breastfeeding is a global food production system with unsurpassed capacity to promote children’s food security and maternal and child health, but it is side-lined by trade negotiators who seek instead to expand world markets for cow’s milk-based formula. Regulators focus on potential risks of feeding donated human milk, rather than on health risks of exposing infants and young children to highly processed bovine milk. Similarly, policymakers aspire to provide universal health care access that may be unaffordable when two thirds of the world’s children are not optimally nourished in infancy, resulting in a global double burden of infectious and chronic disease. Universal breastfeeding requires greater commitment of resources, but such investment remains lacking despite the cost effectiveness of breastfeeding protection, support and promotion in and beyond health services. Women invest substantially in breastfeeding but current policy - epitomised by the G20 approach to the ‘gender gap’ - fails to acknowledge the economic value of this unpaid care work. Economic incentives for mothers to optimally breastfeed are dwarfed by health system and commercial incentives promoting formula feeding and by government fiscal policies which ignore the resulting economic costs. ‘The market’ fails to protect breastfeeding, because market prices give the wrong signals. An economic approach to the problem of premature weaning from optimal breastfeeding may help prioritise global maternity protection as the foundation for sustainable development of human capital and labour productivity. It would remove fiscal subsidies for breast milk substitutes, tax their sale to recoup health system costs, and penalise their free supply, promotion and distribution. By removing widespread incentives for premature weaning, the resources would be available for the world to invest more in breastfeeding

Land value taxation: a critique of 'Tax Reform, a Rational Solution'

It has been argued by advocates of land value taxation that the centrepiece of tax reform should be land taxation, because of the efficiency, equity, simplicity and ethical advantages of taxation of the unearned increment in land values. This paper critiques these arguments. It is shown, by historical reference to the fate of land value taxation in the Australian states, to the ACT public leasehold system, and to the Commonwealth capital gains tax, that such tax reform will never succeed precisely because of its advantages, which adversely impinge on the interests of politically powerful landowners

Is the only good tax an old tax? A historical perspective on the GST debate

This paper critiques the arguments put by the Howard Government for an unadulterated, flat rate GST policy, by taking the characterisation of the current wholesale sales tax (WST) as an outdated tax without design or logic, and showing this view to be historically wrong and superficial. It does so by exploring the social reasoning adopted politically in constructing and evolving the sales tax, and its interaction with other taxes. It posits a ‘benevolent government’ interpretation of tax design to contrast with the Treasure ‘rent-seeking’ model, and examines the rationale for exemptions and multiple rates in historical context. It also asks whether economic change since 1930 does make the WST irrelevant to current conditions, as the Government has asserted. The narrowness of the present sales tax base mainly reflects design decisions in the 1930s and 1940s. These aimed at limiting the burden on families with children, the poor, and other vulnerable groups through exempting essential expenditures. Exemption such as food from sales taxation reflected strongly held social values having bipartisan political acceptance. These values included ‘progressivity’, but also encompassed other conceptions of ‘fair’ taxation. Unless there have been major changes in public attitudes to what constitutes ‘fair’ taxation, this implies the GST as presently proposed may not improve Australian’s social welfare, and may not be politically viable in Australia. The consumption tax base has declined substantially in relation to GDP since 1930, reducing the WST’s potential yield. However, a GST would have been similarly ‘eroded’. Only since the 1980s is the growth of services a significant argument for consumption tax reform. Tax reform is disruptive and costly. Benefits in terms of equity and efficiency gains must be reliable as well as substantial to make a valid case for change. If the ‘rent-seeking’ thesis for the WST’s narrow base prevails, and the GST taxes food to avoid encouraging ‘rent seeking’, tax reformers must show how their ‘unadulterated’ GST revenue base is protected against the lobbying which supposedly corrupted the WST. Likewise, unless the GST is a Trojan horse for achieving undeclared changes in the distribution of income, its proponents must show how the GST compensation package prevents an ‘unadulterated’ GST worsening present inequalities of income, not just beyond the next Budget but over the next several decades as the GST rate rises and/or Budget programs are pared back. On both these grounds, exemptions for food might best be included in the design of the GST as part of the tax reform package

The Effects of Subjective Survival on Retirement and Social Security Claiming

This research examines the relationship between mortality risk and retirement, and mortality risk and the propensity to take early and reduced Social Security benefits. The main theory for understanding saving behavior is the life-cycle model (LCH). The LCH, however, can be extended to find the optimal retirement age, and can be used to make predictions about the desire to annuitize or equivalently, the desire to delay claiming Social Security benefits. According to the LCH, individuals who expect to be exceptionally long-lived will retire at a later age than individuals who expect to die early because they will need greater wealth to finance more years of retirement. According to almost any model of intertemporal maximization, those who expect to be long lived will see the increase in Social Security benefits that result from retiring at 65 rather than at 62 as being financially advantageous and will, therefore, delay application for benefits until the age of 65. In principle the decision to retire and the decision to take early and reduced benefits are related decisions but not necessarily the same decision. Therefore this study examines both decisions.

The Effects of Subjective Survival on Retirement and Social Security Claiming

According to the life-cycle model, mortality risk will influence both retirement and the desire to annuitize wealth. We estimate the effect of subjective survival probabilities on retirement and on the claiming of Social Security benefits because delayed claiming is equivalent to the purchase of additional Social Security annuities. We find that those with very low subjective probabilities of survival retire earlier and claim earlier than those with higher subjective probabilities, but the effects are not large. The great majority of workers claim as soon as they are eligible.

Investing in breastfeeding – the world breastfeeding costing initiative

BACKGROUND Despite scientific evidence substantiating the importance of breastfeeding in child survival and development and its economic benefits, assessments show gaps in many countries' implementation of the 2003 WHO and UNICEF Global Strategy for Infant and Young Child Feeding (Global Strategy). Optimal breastfeeding is a particular example: initiation of breastfeeding within the first hour of birth, exclusive breastfeeding for the first six months; and continued breastfeeding for two years or more, together with safe, adequate, appropriate, responsive complementary feeding starting in the sixth month. While the understanding of "optimal" may vary among countries, there is a need for governments to facilitate an enabling environment for women to achieve optimal breastfeeding. Lack of financial resources for key programs is a major impediment, making economic perspectives important for implementation. Globally, while achieving optimal breastfeeding could prevent more than 800,000 under five deaths annually, in 2013, US$58 billion was spent on commercial baby food including milk formula. Support for improved breastfeeding is inadequately prioritized by policy and practice internationally. METHODS The World Breastfeeding Costing Initiative (WBCi) launched in 2013, attempts to determine the financial investment that is necessary to implement the Global Strategy, and to introduce a tool to estimate the costs for individual countries. The article presents detailed cost estimates for implementing the Global Strategy, and outlines the WBCi Financial Planning Tool. Estimates use demographic data from UNICEF's State of the World's Children 2013. RESULTS The WBCi takes a programmatic approach to scaling up interventions, including policy and planning, health and nutrition care systems, community services and mother support, media promotion, maternity protection, WHO International Code of Marketing of Breastmilk Substitutes implementation, monitoring and research, for optimal breastfeeding practices. The financial cost of a program to implement the Global Strategy in 214 countries is estimated at US$17.5 billion ($130 per live birth). The major recurring cost is maternity entitlements. CONCLUSIONS WBCi is a policy advocacy initiative to encourage integrated actions that enable breastfeeding. WBCi will help countries plan and prioritize actions and budget them accurately. International agencies and donors can also use the tool to calculate or track investments in breastfeeding.The project was possible through financial support from SAFANSI (South Asia Food and Nutrition Security Initiative) project and a contribution by DFID (Department for International Development) and AusAID (Australian Agency for International Development)

Animal Assisted Therapy in Pediatric Speech-Language Therapy with a Preschool Child with Severe Language Delay: A Single-Subject Design

Background: The application of animal assisted therapy (AAT) in provision of services is an emerging area of research in the allied health literature. Prior investigators have called for additional research concerning applications of animal assisted therapy in specific settings and patient populations. Objectives: to (a) investigate the effect of animal assisted therapy on the quantity of vocalizations in a single child participant with severe speech delay, and (b) identify optimal animal assisted therapy practices in pediatric group speech-language therapy. Design: A case study was conducted using ABA single-case design. The number of vocalizations produced by the participant was measured for 15-minute periods during four initial baseline (no animal assisted therapy) sessions, four sessions with the intervention condition (animal assisted therapy), and three additional baseline (no animal assisted therapy) sessions. Observations were also recorded concerning the interactions between the animal assisted therapy team, the participant, and other children in the group. Results: The number of vocalizations increased markedly during the intervention phase, and the effect was nonreversible. The participant also demonstrated increased attention to tasks and activities during the intervention phase. An increase in unpredictable, forceful movements by the participant and other children was observed after 10-minutes. Conclusions: Although the same degree of increase in vocalizations is not expected for every child exposed to animal assisted therapy, results suggest that animal assisted therapy is a potentially valuable tool for speech-language pathologists working with children who have severe delays in communication skills. Recommendations for future research include consideration of time limits for animal assisted therapy interventions, detailed advance planning with the handler to minimize stressors for the animal assisted therapy team, and ensuring adequate adult personnel for data collection and management of the intervention sessions

The volume and monetary value of human milk produced by the world's breastfeeding mothers: Results from a new tool

The Mothers' Milk Tool was developed to make more visible the economic value contributed to society by women's unpaid care work through breastfeeding infants and young children. This manuscript describes the development and display key features of the tool, and reports results for selected countries. For the development, we used five steps: (1) defining the tool by reviewing existing tools and scholarly literature to identify uses, approaches, design features, and required data characteristics for a suitable product; (2) specifying the best open-access data available for measurement and easy updating; (3) analyzing development options; (4) testing predictive models to fill identified breastfeeding data gaps; and (5) validating the tool with prospective users and against previous research. We developed an Excel-based tool that allows working offline, displaying preloaded data, imputing data, and inputting users' data. It calculates annual quantities of milk produced by breastfeeding women for children aged 0–35.9 months, and the quantities lost compared to a defined biologically feasible level. It supports calculations for an individual mother, for countries, and global level. Breastfeeding women globally produce around 35.6 billion liters of milk annually, but 38.2% is currently “lost” due to cultural barriers and structural impediments to breastfeeding. The tool can also attribute a monetary value to the production. In conclusion, the Mothers' Milk Tool shows what is at risk economically if women's important capacity for breastfeeding is not protected, promoted, and supported by effective national policies, programs, and investments. The tool is of value to food and health policymakers, public officials, advocates, researchers, national accountants and statisticians, and individual mother/baby dyads, and will assist consideration of breastfeeding in food balance sheets and economic production statistics. The tool supports the 2015 Call to Action by the Global Breastfeeding Collective by facilitating the tracking of progress on breastfeeding targets