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The Labor Supply Effect of In-Kind Transfers

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Author Info
Paul Bingley (Danish National Centre for Social Research, Herluf Trolles Gade 11, DK-1052 Copenhagen, Denmark)
Ian Walker (Lancaster University Management School, Lancaster LA1 4YX, UK)
Abstract

We estimate a model of labor supply and participation in multiple programs for UK lone mothers which exploits a reform of in-work transfers. Cash entitlements increased but eligibility to in-kind child nutrition programs was lost. We find that in-work cash and inwork in-kind transfers both have large positive labor supply effects. There is, however, a utility loss from program participation which is estimated to be larger for cash than for child nutrition. This implies that the partial cash out of the in-kind benefits reduced labor supply.

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File URL: http://geary.ucd.ie/images/Publications/WorkingPapers/gearywp200820.pdf
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File Function: First version, 2008
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Paper provided by Geary Institute, University College Dublin in its series Working Papers with number 200820.

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Length: 45 pages
Date of creation: 12 Sep 2008
Date of revision:
Handle: RePEc:ucd:wpaper:200820

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Related research
Keywords: labor supply; program participation; in-kind transfers;

Find related papers by JEL classification:
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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References listed on IDEAS
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  14. Blundell, Richard W & Walker, Ian, 1982. "Modelling the Joint Determination of Household Labour Supplies and Commodity Demands," Economic Journal, Royal Economic Society, vol. 92(366), pages 351-64, June. [Downloadable!] (restricted)
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