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The Differential Impact of Universal Child Benefits on the Labour Supply of Married and Single Mothers

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  • Kourtney Koebel
  • Tammy Schirle

Abstract

We examine the effects of the Universal Child Care Benefit on the labour supply of mothers. The benefit has a significant negative effect on the labour supply of legally married mothers, reducing their likelihood of participation in the labour force by 1.4 percentage points and hours worked by nearly one hour per week. In contrast, the likelihood of participation by divorced mothers rises by 2.8 percentage points when receiving the benefit and does not affect hours worked. Moreover, the benefit does not have a statistically significant effect on the participation of common-law married mothers or never-married mothers.

Suggested Citation

  • Kourtney Koebel & Tammy Schirle, 2016. "The Differential Impact of Universal Child Benefits on the Labour Supply of Married and Single Mothers," Canadian Public Policy, University of Toronto Press, vol. 42(1), pages 49-64, March.
    • Handle: RePEc:cpp:issued:v:42:y:2016:i:1:p:49-64
    DOI: 10.3138/cpp.2015-049
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    Cited by:

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    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. "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.
    5. 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.
    6. Filip Premik, 2021. "Evaluating the 500+ child support program in Poland," GRAPE Working Papers 53, GRAPE Group for Research in Applied Economics.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    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).

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    More about this item

    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

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