The Distribution of Economic Resources to Children in Germany

Abstract

This paper investigates the redistributive impact of private and public childcare provision and education on children’s resources in Germany between 2009 and 2013. Combining survey data from the Socio-Economic Panel (SOEP) with administrative data, extended disposable income inequality is found to be significantly lower than disposable cash income inequality across all years. At the same time, publicly provided childcare and schooling notably decrease inequality among children such that it cushions cash income inequality. One major reason for this effect is that public in-kind benefits profit children living with single parents, which are deprived in terms of cash incomes, most.