Child Allowances and the U.S. Child Tax Credit

Abstract

Child allowances, a form of cash transfer provided by governments to families with children, represent an important intersection of economic support and social policy. These programs, typically paid monthly and untethered to parental income or employment status, are not just about alleviating the financial pressures of child-rearing. They reflect deeper societal commitments to family well-being, child development, and equality. By offering reliable financial stability, especially to lower-income families, child allowances can significantly reduce child poverty and improve health and educational outcomes. These allowances also promote gender equality by enabling parents, particularly women, to navigate the complex balance between work and caregiving. Beyond their economic impact, child allowances are powerful tools in reducing inequality and fostering greater social cohesion, contributing to a more equitable and integrated society.