Arbeitspapier

Labor Supply Effects of a Universal Cash Transfer

I investigate the labor supply effects of the introduction of a large unconditional cash benefit. I exploit the unique design of the child benefit program in Poland to identify the income effects of the monthly transfer in a difference-in-differences design. On average, the marginal propensity to earn out of unearned income was equal to -0.14. For every extra 100 dollars in monthly child benefit transfers households receive, they spend 43 dollars on consumption and save 43 dollars. Additional evidence shows that the program had a positive impact on investments in human capital and home production efficiency.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 16186

Klassifikation
Wirtschaft
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Labor Force and Employment, Size, and Structure
Time Allocation and Labor Supply
Thema
unconditional cash transfer
income effects
labor supply
child benefit
poverty
difference-in-differences

Ereignis
Geistige Schöpfung
(wer)
Gromadzki, Jan
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2023

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Gromadzki, Jan
  • Institute of Labor Economics (IZA)

Entstanden

  • 2023

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