U.S., European benefits compared

U.S., European benefits compared

Most European nations offer family benefits to people of all incomes. These benefits have shielded low-income families from poverty and allowed poor families to work instead of going on welfare, scholars say.

Typical European benefits include:

• Child allowances: Cash benefits, based on number of children, to offset the cost of clothes, food and other children's needs.

• National health insurance for all children and parents.

• Subsidized child care or free preschools -- typically for children over age 3.

• Child support: A government payment to children whose absent parent can't or won't pay child support.

• Housing allowances for low- and middle-income families.

American style

The United States has a different set of family programs. It is the only country whose main cash benefit is primarily for single mothers, who lose the benefit and their health insurance if they work full time. U.S. family benefits usually are available only for the poorest families.

• Aid to Families with Dependent Children: Known as "welfare," AFDC is a monthly cash benefit designed to support single mothers. Two-parent families now are eligible.

• Medicaid: National health insurance for families on welfare and the nation's lowest-income individuals and families.

• Food stamps: Coupons that can be used to buy groceries.

• Headstart: A nursery school program for the country's poorest children.

• Housing Assistance: Housing vouchers or rent subsidies in government-owned housing projects for the poorest of families.

• Earned income tax credit: A tax credit for low-income families.

Source: Timothy Smeeding, Luxembourg Income Study, Syracuse University, 1991. "Starting Right," by Sheila Kamerman and Alfred Kahn (Oxford University Press, 1995).