Impact of Family Benefits on Persistent Child Poverty in Estonia

Abstract:The family’s economic situation is one of the fundamental components of children’s well-being. Although child poverty has been researched extensively, previous studies have mostly focused on specific points in time. This article focuses on the rate of persistent poverty among children in Estonia based on the definition put forward by Eurostat, and data from the Estonian Social Survey (ESS) covering the period from 2013 to 2018. In addition to annual poverty indicators, the Estonian dataset allows for the analysis of both persistent relative and persistent absolute poverty. For the first time, however, this analysis explores whether and to what extent family benefits help reduce persistent child poverty. In Estonia, family allowances increased in the second part of 2013, coinciding with a decrease in annual child poverty rates. This analysis aims to provide an answer as to whether this trend is the result of increased family benefits, and whether it has affected rates of persistent poverty.