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Substance-oriented child indicators

Standard budgets as policy measures

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Pure science vs. policy

Two principally different types of indicators:

• monitoring devices

- income poverty

- utility based equivalence scales children’s needs relative

to that of adults

• indicators as input in policy

- classical poverty lines

- standard budgets

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Income povertyEuropean Union: in risk of poverty: 60 percent of the median income.Crucial question: why 60 percent? Why not 50, 45, 70 or 45,7 of the median?

Answer: * research on income inequality identifies some important characteristic of individuals and households with an income below the threshold But: * We have little knowledge of the material welfare among individuals/households with income on 60 percent* We know little about the effects of changing the poverty line

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Case of Norway:

• Poverty 50 percent of median income over a 3 year period as the former EU definition. Change from 50 to 60 percent implies that pensioners with the minimum pension are defined as poor.

Consequences: - politically unacceptable, - offending public opinion - disagreement among social scientist and other expert whether or not people on minimum old age pension should be characterized as poor.

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Pros et cons: Income poverty • is suitable to monitor the development of poverty (inequality) over time• is a efficient measure for cross-country comparison• high scientific legitimacy, low political legitimacy• statistically precise but in real life almost useless – lack of content• not a good measure to define how much income families need to be out of poverty• rejects normative implications of non-substantive indicators hence useless to define normative levels of living, – e.g. poverty (utility based scales)• hides normative implications in “pure” statistical measures• treats income as independent variable• treats children’s needs as relative to the needs of adults

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Measures as input for policyClassical economics and poverty research have always argued for a material approach to levels of living: Income is treated as a depended variable, and not the other way around.

In line with the classical tradition we have to ask some importantquestions before we decide the poverty line.

- What do families/children need? - What types of items (consumer goods) and activities can satisfy these needs? - How much does it cost to buy these items and participate in these activities (consumption expenditure)?- What income level equals this consumption level?

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Standard budget

In every society there exist :

”a certain minimum of possessions in order for the family to meet the cultural definition of a family. This list of goods of course varies in accordance with value changes….This list - described under the term

”standard package” - is relatively invariant in the face of moderate income changes. Its acquisition is the culturally defined goal of the family as consuming unit. (Parsons & Smelser 1956: 222)

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The different aspects of being a child

Being – referring to the situation here and now. They are vulnerable and subordinated their parent’s economy.

Becoming – children are developing and their conditions for development influence their future.

Children’s current and future needs

Different phases – new activities and challenges and new consumption

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Modern childhood

Commercialized – things and activities cost money

The need for fitting in and joining in.

Children in poor families experience social exclusion.

The standard budget is a means whereby the child is seen as an individual who shall fit in and join the social world of their peers - today as well as in the future.

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Standard budget: LeisureChild 4-6 yearsSports equipmentBicycle, rucksack, thermos, sledding boardSafety equipmentLife west, helmet, children’s car seatGame/playLudo, jigsaw, cardsDrawingCrayons, drawing pad, colorings

book, water colorsEntertainment2 books, comics, audio book, song bookOther thingsFootball, doll, doll’s pram, dolls

clothes, toy cars

Child 11-14 yearsSports equipmentBicycle, sports bag, ski, rucksack, backpack,

thermos, sleeping bagSafety equipmentLife west, helmetGames/playPlay station, construction setDrawingFelt pensEntertainment3 books, 2 CDs’ 6 cinema ticketsOther thingsFootball, mobile phoneActivitiesMembership in one paid activity with necessary

equipment, activity group excursions

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A normative modelPublic standards: * Nutrition * Health * Education * Housing

Public norms: * Housing conditions * Education

Empirical consumption: * Consumer expenditure survey * Buying behavior * Consumption pattern * Consumption culture

Participation/activities: * Home * Leisure * Work * Culture

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Important assumptions: (1)

• items are used as a method for expression of consumption expenditure. The item list is not published

• both daily and infrequent expenses • a “reasonable” consumption level that gives room for

participation in common social activities• selection of items that are connected to regular

functions in a household• all items are bought in shops – typically season and/or

sale prices is not part of the budget

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The standard budget does not include:

• housing costs • tobacco and alcohol • education • health care• expensive, outfit extensive leisure activities• gift giving and major celebrations (ex. weddings)

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Important assumptions (2)

Long term budget

Implications: the expenditure is calculated(1) for households that already have a “reasonable” consumption level(2) that households should be able to maintain the consumption level(3) households with a consumption expenditure below this level need – in a limited period of time – income above this level to reach a “reasonable” level of consumption expenditure (the extra cost of being poor)

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8730

10880 1150512345

0

2000

4000

6000

8000

10000

12000

14000

Adult Adult+ 2 year Adult+6 years Adult+12 years

Standard budget: Single, Single+2 years, Single+6years, Single+12 years. Ratio.

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1

0,25

0,32

0,41

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1

Adult Adult+ 2 year Adult+6 years Adult+12 years

Standard budget: Single, Single+ 2 years, Single+6 years, Single+12 years. Ratios.

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Major principles: food

• Division of age/gender group after Nordic nutritional recommendations

• Selecting quantities that satisfy the recommendations• Selecting foodstuff that is widely eaten and that are tasty and

have a necessary variety• Selecting specific goods/brands and groceries for price

recording• 28 days dinner menu • Calculating the budget – mean price per kilo/liter, correcting for

wastage – for different section of the population

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Minimum standard of consumption (?)

Changing the assumption of long time budget and implication (2): households should be able to maintain the consumption level.

Action: remove items with long durableness – furniture, household goods

Implications: (A) Household must initially be on a “reasonable” consumption level(B) Reduce the consumption expenditure on the remaining consumption areas