Compensation for Households with Children in Croatia, Slovenia and Austria

  • Ivica UrbanEmail author
  • Martina Pezer
Original Research


We assess the level and distribution of compensation for households with children provided by child support policies in Croatia, Slovenia and Austria. The child support policies in which we are interested include child and large family benefits, subsistence and housing benefits, and tax relief for dependent children. Using a microsimulation technique of “policy importing”, we show that the adequacy and evenness of the Croatian child support could be substantially improved if Croatia’s current policies were replaced by their Slovenian and Austrian equivalents. We propose improved versions of Verbist and Van Lancker’s (Soc Indic Res 128(3):1299–1318, 2016) indicator of horizontal equity in the sense of construction, aggregation to the population level and interpretation.


Child benefits Compensation index Horizontal equity Microsimulation 

JEL Classification

C81 D31 H53 I38 



This work has been fully supported by the Croatian Science Foundation under the project number UIP-2014-09-4096 (“Application of Microsimulation Models in the Analysis of Taxes and Social Benefits in Croatia”, AMMATSBC). The work of doctoral student Martina Pezer has been fully supported by the Croatian Science Foundation. The authors wish to thank two anonymous referees for their valuable suggestions and discussions, which significantly improved the quality of this paper. The authors also thank Holly Sutherland for her constructive comments on an earlier version of this paper. Any remaining errors are the authors’. Some of the results presented in this paper are based on EUROMOD version H0.34. EUROMOD is maintained, developed and managed by the Institute for Social and Economic Research (ISER) at the University of Essex, in collaboration with national teams from the EU member states. The authors are indebted to the many people who have contributed to the development of EUROMOD. The process of extending and updating EUROMOD is financially supported by the European Union Programme for Employment and Social Innovation (Easi; 2014-2020). The results and their interpretation are the authors’ responsibility. EUROMOD utilises microdata from the EU Statistics on Incomes and Living Conditions (EU-SILC) made available by Eurostat (59/2013-EU-SILC-LFS).


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Copyright information

© Springer Nature B.V. 2019

Authors and Affiliations

  1. 1.Institute of Public FinanceZagrebCroatia

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