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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://www.ucd.ie/geary/static/publications/workingpapers/gearywp200820.pdf
File Function: First version, 2008
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Bibliographic Info

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

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References

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  16. repec:fth:stanho:e-90-11 is not listed on IDEAS
  17. 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.
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Cited by:
  1. David Neumark & William Wascher, 2007. "Does a Higher Minimum Wage Enhance the Effectiveness of The Earned Income Tax Credit?," NBER Working Papers 12915, National Bureau of Economic Research, Inc.

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