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Elterngeld (translated literally from German as ''parents' money'') is a tax-financed payment for
couples Couple or couples may refer to : Basic meaning *Couple (app), a mobile app which provides a mobile messaging service for two people *Couple (mechanics), a system of forces with a resultant moment but no resultant force *Couple (relationship), tw ...
which pays an amount of money to support the costs of bringing up a child. Elterngeld schemes exists in Germany, France, and
Scandinavia Scandinavia; Sámi languages: /. ( ) is a subregion#Europe, subregion in Northern Europe, with strong historical, cultural, and linguistic ties between its constituent peoples. In English usage, ''Scandinavia'' most commonly refers to Denmark, ...
. 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. Twenty-five 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 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.BBC NEWS , World , Europe , Pregnant Germans seek cash bonus
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Countries

*Germany – up to 25,200 euros for up to 14 months (two thirds of their former salary with a minimum at 300 euros and a cap at 1,800 euros per month, each parent can receive the payment for a maximum of 12 months) from 1 January 2007 on See more:
Elterngeld (Germany) Elterngeld (parental allowance) is a transfer payment dependent on net income as compensation for concrete disadvantages in the early phase of starting a family and thus a parent-related, temporary compensation payment. The parental allowance rep ...
*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 *
Sweden Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic country located on ...
– 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 *
Norway Norway, officially the Kingdom of Norway, is a Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of Jan Mayen and t ...
– 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) *
Finland Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of B ...
– parents' money is paid for nine months *
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– for at least six months{{Citation needed, date=February 2017


Elterngeld and gender

Several proposals have been offered to use elterngeld-style payments to combat the effects of
sex-selective abortion Sex-selective abortion is the practice of terminating a pregnancy based upon the predicted sex of the infant. The selective abortion of female fetuses is most common where male children are valued over female children, especially in parts of Eas ...
in Asia.


References


External links


German government information page on ElterngeldElterngeld calculator for German citizensInternational Network on Leave Policy and Research
Government aid programs Society of Germany Society of France Society of Sweden Society of Denmark Society of Finland Society of Norway