Anneli Miettinen: Investing in families - introduction to the theme. Presentation at Kela Conference on Social Security 2019 – Equality and wellbeing through sustainable social security system, 10.12.2019.

1. Investing in families – introduction to the
theme
Anneli Miettinen
Kela Research
Kela Conference on Social Security 2019
10.12.2019
Session: Investing in the future – family policies and fertility

2. Family support in Finland
11.12.20192
2299
1375
991
934
3.7 mrd e
2.9 mrd e
SERVICES CASH BENEFITS
Day care/ECEC
Child protection
Child benefit
Parental
allowances
Cash
benefits,
>97 % paid
by Kela
THL: Sosiaaliturvan rahoitus, Tilastoraportti 7/2019; Kela Statistics
Expenditure on families and children in 2017:
services and cash benefits

3. Family benefits paid by Kela
• Family benefits are available for all families with children who
are covered by the Finnish social security system and live permanently or work in Finland
• Maternity grant (maternity package)
• Adoption grant
• Child benefit
• Child maintenance allowance
• Maternity, special maternity, paternity and parental allowance
• Child care allowances:
• Home care / private day care / flexible and partial care allowance
• Assistance for ill and disabled children
• A supplement in unemployment benefit and pensions paid by Kela for beneficiaries
with children
3
http://www.kela.fi/web/en/families
11.12.2019

4. Finland: higher than average level (OECD/EU) public
spending on family support
11.12.20194
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
France
UnitedKingdom
Sweden
Hungary
Denmark
Iceland
Norway
Luxembourg
Belgium
Finland
Germany
Estonia
CzechRepublic
EUaverage
Austria
Italy
OECDaverage
SlovakRepublic
Ireland
Switzerland
Latvia
Netherlands
Poland
Slovenia
Lithuania
Japan
Portugal
Spain
UnitedStates
Greece
Cash Services Tax-breaks for families
OECD Family Database
Expenditure on family support, % of GDP, around 2015
FINLAND

5. 11.12.20195
Family benefits and the 2008/09 recession in Finland
0
100
200
300
400
500
600
700
800
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Minimum parental
benefit
Home care allowance
Child benefit (1st
child)
Child benefit (3rd
child)
Single-parent
supplement
Maintenance
allowance
From 2008 to 2019
(change in real value):
Minimum parental
allowance: +63 %
Child benefit: -10/-15 %
Family benefits e/mth, in 2019 value
Basic unemployment benefit: 696.60 e/m
Basic social assistance (one-person hh): 497 e/m
Kela Research/Miettinen

6. Challenges
11.12.20196
- Low fertility (& gender disparity in childcare)
- Polarization of families: diverging destinies

7. Finland: From a (relatively) high-fertility to a low-
fertility country?
11.12.20197
1
1.2
1.4
1.6
1.8
2
2.2
2.4
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Total fertility rate TFR <1.55 in Europe
(2017): 17 countries
Lowest (<1.4) in Southern Europe
The 2008/2009 recession marked a
turning point in TFR in many countries.
Since then, fertility has decreased in 17
countries (of EU27).
Decline in TFR (in relative terms) has
been the strongest in the Nordic
countries (Iceland, Finland, Norway:
decline in TFR 18-23 %)
FINLAND 1.41
Norway 1.56
Iceland 1.71
Denmark 1.73
Sweden 1.75
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2.40 1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
Finland
Sweden
Norway
France
Germany
Italy
US
Italy: 1.32
France: 1.87
Finland: 1.41
Eurostat Population Database & National statistical offices
TFR
Total
fertility
rate

8. 11.12.20198
Before the recession
2005->2009 (blue)
Recession years
2009->2013 (yellow)
Recovering economy
2013->2018 (orange)
Biggest drops in age-specific fertility rates among 20-
34 yr olds – who contribute 75 % of all births in Finland
Change in age-specific fertility rate ASFR, %
-35
-30
-25
-20
-15
-10
-5
0
5
10
15
Change 2005-2009
Change 2009-2013
Change 2013-2018
20-24 25-29 30-34 35-39 40-44 Age group-35
-30
-25
-20
-15
-10
-5
0
5
10
15
Change 2005-2009
Change 2009-2013
Change 2013-2018
20-24 25-29 30-34 35-39 40-44 Age group

9. Family support and fertility: is there a link?
11.12.20199
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2.20
0.00 1.00 2.00 3.00 4.00
Ireland
Germany
France
UK
Hungary
SweUS
ItalyGreece
Fin
Total fertility rate
Family support, as % of GDP
Generous family support seems
to promote fertility, but
evidence from single-country
studies is not clear
Policy measures need to be
- Substantial
- Cover all/most
- (Bring something ”new”)
OECD Family database & Eurostat Population Database

10. 11.12.201910
Polarization of families: Large disparities in children’s
family outcomes
43 %
21 %
12 %
0
10
20
30
40
50
60
70
1 yr 3 yr 6 yr 9 yr 12 yr
Low Medium High
Jalovaara & Andersson 2017
Cumulative percentage of children (%) ever living out-of-
parental-union at different ages, by maternal education
Poverty rate among single parent
households remains high – 30 % of
single-parent hh receive basic social
assistance.
Long-term poverty rate among children
aged 0-17 years: 6 %.
NEET-rates among 20-24-yr old men
have decreased during past 3 years, but
trend not as clear for women
(2018: 14.8 M/13.6 F, age 20-24. OECD)

11. 11.12.201911
Sustainable social security – not only financially
• How to address low fertility
• Gendered patterns in reconciliation of work&family
• Young adults in need of targeted support
• Legitimacy and funding: young generations will bear
the burden of rapidly aging societies