IDEAS home Printed from https://ideas.repec.org/p/wlu/lcerpa/0094.html
   My bibliography  Save this paper

The differential impact of universal child benefits on the labor supply of married and single mothers

Author

Listed:
  • Kourtney Koebel, Tammy Schirle

    (Wilfrid Laurier University)

Abstract

Using a difference-in-differences estimator, we find the Canadian Universal Child Care Benefit (a demogrant paid to families with children under age 6 that was introduced in July 2006) has significant negative effects on the labor supply of legally married mothers but significant positive effects on the labor supply of single mothers. The positive effect for single mothers is concentrated among divorced mothers, with results suggesting divorced mothers’ likelihood of participating in the labor force rises by 2.8 percentage points when receiving the benefit. This contrasts with a reduction in the likelihood of legally married mothers participating in the labor force by 1.4 percentage points. Further, the effects for single moms primarily represent entry to employment and the labor force (extensive margin) and not an increase in hours among those who would have been working without the benefits. The estimated effects for common-law married mothers and single never-married mothers are not statistically significant.

Suggested Citation

  • Kourtney Koebel, Tammy Schirle, 2015. "The differential impact of universal child benefits on the labor supply of married and single mothers," LCERPA Working Papers 0094, Laurier Centre for Economic Research and Policy Analysis, revised 01 May 2015.
    • Handle: RePEc:wlu:lcerpa:0094
    Note: LCERPA Working Paper No. 2015-11
    as

    Download full text from publisher

    File URL: http://www.lcerpa.org/public/papers/LCERPA_2015_11.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Herwig Immervoll & Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Emmanuel Saez, 2007. "Welfare reform in European countries: a microsimulation analysis," Economic Journal, Royal Economic Society, vol. 117(516), pages 1-44, January.
    2. Raj Chetty & John N. Friedman & Emmanuel Saez, 2013. "Using Differences in Knowledge across Neighborhoods to Uncover the Impacts of the EITC on Earnings," American Economic Review, American Economic Association, vol. 103(7), pages 2683-2721, December.
    3. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    4. V. Joseph Hotz, 2003. "The Earned Income Tax Credit," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 141-198, National Bureau of Economic Research, Inc.
    5. Moffitt, Robert A. (ed.), 2007. "Means-Tested Transfer Programs in the United States," National Bureau of Economic Research Books, University of Chicago Press, number 9780226533575, December.
    6. Nicole M Fortin, 2005. "Gender Role Attitudes and the Labour-market Outcomes of Women across OECD Countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 21(3), pages 416-438, Autumn.
    7. Robert A. Moffitt, 2003. "Means-Tested Transfer Programs in the United States," NBER Books, National Bureau of Economic Research, Inc, number moff03-1, March.
    8. John B. Taylor, 2011. "An Empirical Analysis of the Revival of Fiscal Activism in the 2000s," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 686-702, September.
    9. Matthew D. Shapiro & Joel Slemrod, 2009. "Did the 2008 Tax Rebates Stimulate Spending?," American Economic Review, American Economic Association, vol. 99(2), pages 374-379, May.
    10. Moffitt, Robert A., 2002. "Welfare programs and labor supply," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 34, pages 2393-2430, Elsevier.
    11. Matthew D. Shapiro & Joel Slemrod, 2003. "Consumer Response to Tax Rebates," American Economic Review, American Economic Association, vol. 93(1), pages 381-396, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lebihan, Laetitia & Mao Takongmo, Charles-Olivier, 2019. "Unconditional cash transfers and parental obesity," Social Science & Medicine, Elsevier, vol. 224(C), pages 116-126.
    2. Magda Iga & Kiełczewska Aneta & Brandt Nicola, 2020. "The effect of child benefit on female labor supply," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-18, March.
    3. Naoi, Michio & Akabayashi, Hideo & Nakamura, Ryosuke & Nozaki, Kayo & Sano, Shinpei & Senoh, Wataru & Shikishima, Chizuru, 2021. "Causal effects of family income on educational investment and child outcomes: Evidence from a policy reform in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    4. Filip Premik, 2021. "Evaluating the 500+ child support program in Poland," GRAPE Working Papers 53, GRAPE Group for Research in Applied Economics.
    5. Lebihan, Laetitia & Mao Takongmo, Charles-Olivier, 2018. "The impact of universal child benefits on family health and behaviours," Research in Economics, Elsevier, vol. 72(4), pages 415-427.
    6. Filip Premik, 2022. "Evaluating Poland’s Family 500+ Child Support Programme," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 1-19.
    7. Stabile, Mark & Baker, Michael & Messacar, Derek, 2021. "The Effects of Child Tax Benefits on Poverty and Labor Supply: Evidence from the Canada Child Benefit and Universal Child Care," CEPR Discussion Papers 15937, C.E.P.R. Discussion Papers.
    8. David A. Green, 2023. "Basic income and the labour market: Labour supply, precarious work and technological change," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(4), pages 1195-1220, November.
    9. Hao Li, 2020. "The effect of universal pre‐kindergarten policy on female labor force participation—A synthetic control approach," Southern Economic Journal, John Wiley & Sons, vol. 87(2), pages 440-482, October.
    10. Filip Premik, 2021. "Estimating the effects of universal transfers: new ML approach and application to labor supply reaction to child benefits," GRAPE Working Papers 54, GRAPE Group for Research in Applied Economics.
    11. Lluis, Stephanie & McCall, Brian, 2022. "Spousal labour supply adjustments to extended benefits weeks: Evidence from Canada," CLEF Working Paper Series 42, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    12. Krzysztof Bartosik, 2020. "Świadczenia pieniężne na rzecz dzieci a podaż pracy kobiet w krajach OECD," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 83-110.
    13. Green, David & Kesselman, Jonathan Rhys & Tedds, Lindsay M., 2021. "Covering All the Basics: Reforms for a More Just Society," MPRA Paper 105902, University Library of Munich, Germany.
    14. Magda, Iga & Kiełczewska, Aneta & Brandt, Nicola, 2018. "The Effects of Large Universal Child Benefits on Female Labour Supply," IZA Discussion Papers 11652, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tammy Schirle, 2015. "The effect of universal child benefits on labour supply," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(2), pages 437-463, May.
    2. Dolls, Mathias & Fuest, Clemens & Peichl, Andreas, 2012. "Automatic stabilizers and economic crisis: US vs. Europe," Journal of Public Economics, Elsevier, vol. 96(3), pages 279-294.
    3. Bradley Hardy & Timothy Smeeding & James P. Ziliak, 2018. "The Changing Safety Net for Low-Income Parents and Their Children: Structural or Cyclical Changes in Income Support Policy?," Demography, Springer;Population Association of America (PAA), vol. 55(1), pages 189-221, February.
    4. Olivier Bargain & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2011. "Tax-Benefit Systems in Europe and the US: Between Equity and Efficiency," CESifo Working Paper Series 3534, CESifo.
    5. Lundberg, Jacob & Norell, John, 2018. "Taxes, benefits and labour force participation: A survey of the quasi-experimental literature," Ratio Working Papers 313, The Ratio Institute.
    6. Robin Jessen & Davud Rostam-Afschar & Viktor Steiner, 2017. "Getting the Poor to Work: Three Welfare-Increasing Reforms for a Busy Germany," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 73(1), pages 1-41, March.
    7. Eissa, Nada & Kleven, Henrik Jacobsen & Kreiner, Claus Thustrup, 2008. "Evaluation of four tax reforms in the United States: Labor supply and welfare effects for single mothers," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 795-816, April.
    8. Hartley, Robert Paul & Lamarche, Carlos, 2018. "Behavioral responses and welfare reform: Evidence from a randomized experiment," Labour Economics, Elsevier, vol. 54(C), pages 135-151.
    9. Kevin Milligan & Mark Stabile, 2004. "The Integration of Child Tax Credits and Welfare: Evidence from the National Child Benefit Program," NBER Working Papers 10968, National Bureau of Economic Research, Inc.
    10. Robert A. Moffitt, 2003. "The Negative Income Tax and the Evolution of U.S. Welfare Policy," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 119-140, Summer.
    11. Diego E. Vacaflores, 2013. "Monetary Transfers in the U.S.: How Efficient Are Tax Rebates?," Economies, MDPI, vol. 1(3), pages 1-23, November.
    12. Laun, Lisa, 2017. "The effect of age-targeted tax credits on labor force participation of older workers," Journal of Public Economics, Elsevier, vol. 152(C), pages 102-118.
    13. Jesse Rothstein, 2010. "Is the EITC as Good as an NIT? Conditional Cash Transfers and Tax Incidence," American Economic Journal: Economic Policy, American Economic Association, vol. 2(1), pages 177-208, February.
    14. Maren Froemel & Charles Gottlieb, 2021. "The Earned Income Tax Credit: Targeting the poor but crowding out wealth," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(1), pages 193-227, February.
    15. Jesse Rothstein, 2010. "Is the EITC as Good as an NIT? Conditional Cash Transfers and Tax Incidence," American Economic Journal: Economic Policy, American Economic Association, vol. 2(1), pages 177-208, February.
    16. Luis Ayala & Milagros Paniagua, 2019. "The impact of tax benefits on female labor supply and income distribution in Spain," Review of Economics of the Household, Springer, vol. 17(3), pages 1025-1048, September.
    17. David Neumark & Katherine E. Williams, 2020. "Do State Earned Income Tax Credits Increase Participation in the Federal EITC?," NBER Working Papers 27626, National Bureau of Economic Research, Inc.
    18. Peter Haan & Victoria Prowse, 2010. "A structural approach to estimating the effect of taxation on the labour market dynamics of older workers," Econometrics Journal, Royal Economic Society, vol. 13(3), pages 99-125, October.
    19. Nicola Pavoni & G. L. Violante, 2007. "Optimal Welfare-to-Work Programs," Review of Economic Studies, Oxford University Press, vol. 74(1), pages 283-318.
    20. Magda Iga & Kiełczewska Aneta & Brandt Nicola, 2020. "The effect of child benefit on female labor supply," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-18, March.

    More about this item

    Keywords

    Labour supply; public policy; child benefits; demogrant;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wlu:lcerpa:0094. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Glen Stewart (email available below). General contact details of provider: https://edirc.repec.org/data/sbwluca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.