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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. Michael Fertig & Marcus Tamm, 2007. "Always Poor or Never Poor and Nothing in Between? Duration of Child Poverty in Germany," Working Papers 59, ECINEQ, Society for the Study of Economic Inequality.
  2. Dustmann, Christian & Ludsteck, Johannes & Schönberg, Uta, 2007. "Revisiting the German Wage Structure," IZA Discussion Papers 2685, Institute for the Study of Labor (IZA).
  3. 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).
  4. 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.
  5. Tamm, Marcus, 2009. "Child Benefit Reform and Labor Market Participation," Ruhr Economic Papers 97, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  6. 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, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  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 S218-34, January.
  8. Thomas Mroz, . "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," University of Chicago - Population Research Center 84-8, Chicago - Population Research Center.
  9. 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.
  10. Corak, Miles & Fertig, Michael & Tamm, Marcus, 2005. "A Portrait of Child Poverty in Germany," RWI Discussion Papers 26, RWI - Leibniz-Institut für Wirtschaftsforschung.
  11. Richard Blundell & Alan Duncan & Costas Meghir, 1995. "Estimating labour supply responses using tax reforms," IFS Working Papers W95/07, Institute for Fiscal Studies.
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