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The effect of child allowances on the labor supply: Evidence from the early 2000s

Author

Listed:
  • Yuval Mazar

    () (Bank of Israel)

Abstract

This study estimates the effect of the sharp reduction in child allowances in the early 2000s on the labor supply. The study uses the difference-in-differences method to estimate the changes in the labor supply of men and women with large numbers of children compared with the changes in the labor supply of men and women with small numbers of children—an increase of about 3.6 percentage points in the labor supply of women with many children, and of about 2.3 percentage points in the labor supply of men with many children, relative to women and men with few children.​

Suggested Citation

  • Yuval Mazar, 2018. "The effect of child allowances on the labor supply: Evidence from the early 2000s," Bank of Israel Working Papers 2018.07, Bank of Israel.
  • Handle: RePEc:boi:wpaper:2018.07
    as

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    References listed on IDEAS

    as
    1. Liang, Che-Yuan, 2012. "Nonparametric structural estimation of labor supply in the presence of censoring," Journal of Public Economics, Elsevier, vol. 96(1), pages 89-103.
    2. Richard Blundell & Monica Costa Dias & Costas Meghir & Jonathan Shaw, 2016. "Female Labor Supply, Human Capital, and Welfare Reform," Econometrica, Econometric Society, vol. 84, pages 1705-1753, September.
    3. Ashenfelter, Orley & Heckman, James J, 1974. "The Estimation of Income and Substitution Effects in a Model of Family Labor Supply," Econometrica, Econometric Society, vol. 42(1), pages 73-85, January.
    4. Anil Kumar & Che-Yuan Liang, 2016. "Declining Female Labor Supply Elasticities in the United States and Implications for Tax Policy: Evidence From Panel Data," National Tax Journal, National Tax Association;National Tax Journal, vol. 69(3), pages 481-516, September.
    5. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-121, May.
    6. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    7. John W. Graham & Andrea H. Beller, 1989. "The Effect of Child Support Payments on the Labor Supply of Female Family Heads: An Econometric Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 24(4), pages 664-688.
    8. David Cesarini & Erik Lindqvist & Matthew J. Notowidigdo & Robert Östling, 2017. "The Effect of Wealth on Individual and Household Labor Supply: Evidence from Swedish Lotteries," American Economic Review, American Economic Association, vol. 107(12), pages 3917-3946, December.
    9. Henk-Wim de Boer & Egbert Jongen & Jan Kabatek, 2014. "The effectiveness of fiscal stimuli for working parents," CPB Discussion Paper 286, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Guido W. Imbens & Donald B. Rubin & Bruce I. Sacerdote, 2001. "Estimating the Effect of Unearned Income on Labor Earnings, Savings, and Consumption: Evidence from a Survey of Lottery Players," American Economic Review, American Economic Association, vol. 91(4), pages 778-794, September.
    11. Richard Blundell & Antoine Bozio & Guy Laroque, 2011. "Labor Supply and the Extensive Margin," American Economic Review, American Economic Association, vol. 101(3), pages 482-486, May.
    12. repec:oup:wbrobs:v:32:y:2017:i:2:p:155-184. is not listed on IDEAS
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    More about this item

    Keywords

    Labor Force; Employment; Size; and Structure;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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