8/26/2019

Poland's Baby Bump

"And it’s an expensive bump. The 500+ program pays out about $1,800 per eligible child. The average Polish worker has net earnings of only about $26,000, according to the OECD, and women’s wages are slightly below that. In other words, the benefit is equal to about 7 percent of what a worker could expect to make from working. But labor income is taxed, whereas the 500+ benefit is not, which brings the benefit to something like 9 or 10 percent of what a worker would get from the marketplace. That is, of course, in addition to other child benefits Poland provides.

In the U.S., again according to the OECD, the average annual wage is about $60,000. To get a similar benefit for Americans, we’d need to provide at least $4,200 a year in untaxed payments per higher-parity child, or something like $5,400 in taxable payments."