The labour supply effect of education maintenance allowance and its implications for parental altruism

Arbeitspapier

Education Maintenance Allowance (EMA) was a UK government cash transfer paid directly to children aged 16-18 in post-compulsory full-time education. Using data from the Longitudinal Study of Young People in England, we find an EMA payment of £30 per week reduces teenagers' labour supply by 3 hours per week. We show this is consistent with parents withdrawing cash and in-kind transfers from their child to a value between £7.80 and £20.10 per week. We therefore argue that making this cash transfer directly to the child produces higher child welfare than if the equivalent transfer were made to parents.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ISER Working Paper Series ; No. 2014-37

Classification and Topics

• Classification: Wirtschaft ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; Time Allocation and Labor Supply ; National Government Expenditures and Welfare Programs
• Subject: Education Maintenance Allowance ; altruism ; transfers ; rotten kid

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Holford, Angus
• Event: Veröffentlichung
• (who): University of Essex, Institute for Social and Economic Research (ISER)
• (where): Colchester
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/126460