Finnish family policy faced two rather different reform waves in the 1990s. They were justi? ed by saving public spending but relied on different social policy philosophies. The article assesses the impact of the reforms on public spending and poverty rates at the turn of the 2000s. The method is based on tax-bene? t models and representative micro data, i.e. on static microsimulation. The results suggest that the increased poverty is due more to changes in the socioeconomic structure than changes in the levels of family policy bene? ts, even though the biggest cutbacks in the reforms focused on families with small children and single parents. The reforms also had an impact on gender relations by offering more incentives to reinforce than alleviate the traditional division of child care and paid work between the parents. That in part may have affected the mothers labor market position and increased income differences between families.
This study asks how Finnish 6-year-olds who stay at home before school start compare in educational outcomes with children who attend public day care. Earlier studies have shown that participation in public day care can enhance school performance especially among disadvantaged children. In Finland, the child home care allowance scheme supports the home care of 6-yearolds if they have a younger sibling under the age of 3 who is also not attending public day care. We used as outcome variables grade point average after compulsory school at age 15 to 16 and dichotomous variable measuring completion of further education by age 25. The study utilized data of the birth cohort 1987 (N = 4,928). The results show that staying at home before school start is associated with poorer school performance but not with completion of further education.
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