Elterngeld
Encyclopedia
Elterngeld is a tax-financed payment for couples
to encourage them to become parents, which pays an amount of money to support the costs of bringing up a child. Elterngeld schemes exists in Germany, France, and Scandinavia
.
It generally does not provide full support of the costs of bringing up a child. It is only provided for a limited period, ranging from until one year after birth until 18 years of age in Norway. The amount of Elterngeld granted depends in some places on the income of the parents.
Economists and critics also argue that the allowance creates shifting birth patterns. In December 2006, media reports suggested that German parents were seeking ways to delay the births of their children until after 00:01 1 January 2007, so that they would gain access to Elterngeld of up to 25,200 euros (two-thirds of their former salary for up to a year), up from 7,200 euros per annum.
in Asia. As population ethicist Jacob Appel
of Brown University has argued:
Couples
thumb|right|1st edition Couples is a 1968 novel by American author John Updike.-Summary:The novel focuses on a promiscuous circle of ten couples in the small Massachusetts town of Tarbox...
to encourage them to become parents, which pays an amount of money to support the costs of bringing up a child. Elterngeld schemes exists in Germany, France, and Scandinavia
Scandinavia
Scandinavia is a cultural, historical and ethno-linguistic region in northern Europe that includes the three kingdoms of Denmark, Norway and Sweden, characterized by their common ethno-cultural heritage and language. Modern Norway and Sweden proper are situated on the Scandinavian Peninsula,...
.
It generally does not provide full support of the costs of bringing up a child. It is only provided for a limited period, ranging from until one year after birth until 18 years of age in Norway. The amount of Elterngeld granted depends in some places on the income of the parents.
Need for
The need for Elterngeld schemes is illustrated by the declining birth rates in Western European countries. For instance, in Germany the present birth rate is 1.3 children per woman, which is below what is calculated at the economically stable rate of 2.1 children per woman. 25 European Union states currently have birth rates below this level. The issues behind the declining birth rate include the higher costs of maintaining a child, and the greater dependence within the household budget economically on women.Criticism
Elterngeld is effectively a third state-level subsidy for some parents – on top of maternity allowance and state income benefits. Economists argue that this has created a complex and costly system of state benefit which could be simplified and reduced in expenses.Economists and critics also argue that the allowance creates shifting birth patterns. In December 2006, media reports suggested that German parents were seeking ways to delay the births of their children until after 00:01 1 January 2007, so that they would gain access to Elterngeld of up to 25,200 euros (two-thirds of their former salary for up to a year), up from 7,200 euros per annum.
Countries
- Germany – 7,200 euros per annum for up to one year, rising to 25,200 euros (two-thirds of their former salary) for up to one year per child born after 00:01 1 January 2007
- France – an allowance of 750 euros per month for one year from September 2005. The money is focused on existing parents producing more children than on first-time parents, with present discussion around allowances for third children. This has meant a higher birth rate at lower cost to the state than in other countries. The French government's goal is to raise the birth rate from 1.9 children per woman to at least 2.1 children per woman
- SwedenSwedenSweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
– up to one year at 80 percent wage level compensation. Further four months can an overall basic amount be paid. Additionally the parents may shorten their work time without wage adjustment over up to two hours daily, until the child is eight years old. The increase of the birth rate in Sweden is attributed to this practice. Most other Scandinavian countries follow similar percentage level of salary Elterngeld payment levels - NorwayNorwayNorway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
– up to two years at 80 percent wage level compensation, or alternatively for 42 weeks at 100 percent (this is for maternity leave, not monthly payment until age of 18) - FinlandFinlandFinland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
– parents' money is paid for nine months - DenmarkDenmarkDenmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
– for at least six months
Elterngeld and gender
Several proposals have been offered to use elterngeld-style payments to combat the effects of sex-selective abortionSex-selective abortion
Sex-selective abortion is the practice of terminating a pregnancy based upon the predicted sex of the baby. The selective abortion of female fetuses is most common in areas where cultural norms value male children over female children, especially in parts of People's Republic of China, India,...
in Asia. As population ethicist Jacob Appel
Jacob M. Appel
Jacob M. Appel is an American author, bioethicist and social critic. He is best known for his short stories, his work as a playwright, and his writing in the fields of reproductive ethics, organ donation, neuroethics and euthanasia....
of Brown University has argued: