Labor supply effects of a universal cash transfer

• 成果类型: Article
• 署名作者: Gromadzki, Jan
• 署名单位: Vienna University of Economics & Business; IZA Institute Labor Economics
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2024.105248
• 发表日期: 2024
• 关键词: Unconditional cash transfer; income effects; labor supply; Child benefit; poverty; difference-in-differences

摘要

I investigate the labor supply effects of the introduction of an exceptionally large unconditional cash benefit. I exploit the unique design of the child benefit program in Poland to identify the effects of the monthly transfer in a difference-in-differences design. The transfer had no short-term effects but caused sizable negative mediumterm effects on household labor supply. In the medium run, population estimates indicate that for every extra 100 dollars in monthly child benefit transfers households received, they reduced their after-tax earnings by 25 dollars, spent 32 dollars on consumption, and saved 43 dollars. These negative labor supply effects are much larger and much more precisely estimated among households with low socioeconomic status. Additional evidence shows that the program had a positive impact on investments inhuman capital and home production efficiency.