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Child Benefit Reform and Labor Market Participation

  • Marcus Tamm

    ()

    (RWI Essen)

This paper examines the impact of a change in the German child benefit system in 1996, which led to a large increase in lump sumtransfers to familieswith 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 thatmothers 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.

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Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 230 (2010)
Issue (Month): 3 (June)
Pages: 313-327

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Handle: RePEc:jns:jbstat:v:230:y:2010:i:3:p:313-327
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  1. Kluve, Jochen & Schaffner, Sandra & Schmidt, Christoph M., 2009. "Labor Force Status Dynamics in the German Labor Market - Individual Heterogeneity and Cyclical Sensitivity," Ruhr Economic Papers 139, Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  2. 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.
  3. Tamm, Marcus, 2009. "Child Benefit Reform and Labor Market Participation," Ruhr Economic Papers 97, Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  4. 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 S218-34, January.
  5. 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.
  6. Michael Fertig & Marcus Tamm, 2007. "Always Poor or Never Poor and Nothing in Between? Duration of Child Poverty in Germany," Working Papers 65, ECINEQ, Society for the Study of Economic Inequality.
  7. Miles Corak & Michael Fertig & Marcus Tamm, 2005. "A Portrait of Child Poverty in Germany," Papers inwopa05/29, Innocenti Working Papers.
  8. Richard Blundell & Alan Duncan & Costas Meghir, 1998. "Estimating Labor Supply Responses Using Tax Reforms," Econometrica, Econometric Society, vol. 66(4), pages 827-862, July.
  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 765-99, July.
  10. 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.
  11. 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).
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