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Child Benefit Reform and Labor Market Participation

Author

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  • Tamm Marcus

    () (Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Hohenzollernstr. 1-3, 45128 Essen, Germany)

Abstract

This paper examines the impact of a change in the German child benefit system in 1996, which led to a large increase in lump sum transfers to families with children.We analyze the impact on the labor force participation of women. Comparing behavioral changes of women with children with behavioral changes of women without children, we find that mothers with a working partner and children above age six considerably reduced the number of working hours (conditional on participation). Participation rates however did not decrease.

Suggested Citation

  • Tamm Marcus, 2010. "Child Benefit Reform and Labor Market Participation," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(3), pages 313-327, June.
  • Handle: RePEc:jns:jbstat:v:230:y:2010:i:3:p:313-327
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    References listed on IDEAS

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    1. Richard Blundell & Alan Duncan & Costas Meghir, 1998. "Estimating Labor Supply Responses Using Tax Reforms," Econometrica, Econometric Society, vol. 66(4), pages 827-862, July.
    2. Merz, Monika, 2004. "Women's Hours of Market Work in Germany: The Role of Parental Leave," IZA Discussion Papers 1288, Institute for the Study of Labor (IZA).
    3. Miles Corak & Michael Fertig & Marcus Tamm, 2008. "A Portrait Of Child Poverty In Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, pages 547-571.
    4. Michael Fertig & Marcus Tamm, 2010. "Always Poor or Never Poor and Nothing in Between? Duration of Child Poverty in Germany," German Economic Review, Verein für Socialpolitik, vol. 11, pages 150-168, May.
    5. Kluve, Jochen & Schaffner, Sandra & Schmidt, Christoph M., 2006. "Labor Force Status Dynamics in the German Labor Market: Individual Heterogeneity and Cyclical Sensitivity," Technical Reports 2006,20, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
    6. Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
    7. Franz, Wolfgang, 1985. "An Economic Analysis of Female Work Participation, Education, and Fertility: Theory and Empirical Evidence for the Federal Republic of Germany," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 218-234, January.
    8. Christian Dustmann & Johannes Ludsteck & Uta Schönberg, 2009. "Revisiting the German Wage Structure," The Quarterly Journal of Economics, Oxford University Press, vol. 124(2), pages 843-881.
    9. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-799, July.
    10. Pencavel, John, 1987. "Labor supply of men: A survey," Handbook of Labor Economics,in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 1, pages 3-102 Elsevier.
    11. Tamm Marcus, 2010. "Child Benefit Reform and Labor Market Participation," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, pages 313-327.
    12. Tamm Marcus, 2010. "Child Benefit Reform and Labor Market Participation," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, pages 313-327.
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    Citations

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    Cited by:

    1. Hanel Barbara & Riphahn Regina T., 2012. "The Employment of Mothers – Recent Developments and their Determinants in East and West Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, pages 146-176.
    2. Hanel Barbara & Riphahn Regina T., 2012. "The Employment of Mothers – Recent Developments and their Determinants in East and West Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, pages 146-176.
    3. Riphahn, Regina T. & Wiynck, Frederik, 2016. "Fertility effects of child benefits," FAU Discussion Papers in Economics 04/2016, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    4. Tamm Marcus, 2010. "Child Benefit Reform and Labor Market Participation," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, pages 313-327.
    5. repec:spr:jopoec:v:30:y:2017:i:4:d:10.1007_s00148-017-0647-y is not listed on IDEAS
    6. C. Katharina Spieß, 2011. "Vereinbarkeit von Familie und Beruf – wie wirksam sind deutsche „Care Policies“?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(s1), pages 4-27, May.
    7. repec:spr:izalpo:v:6:y:2017:i:1:d:10.1186_s40173-017-0089-x is not listed on IDEAS

    More about this item

    Keywords

    Child support; labor supply; program evaluation;

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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