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


  • Yuval Mazar

    (Bank of Israel)


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

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    References listed on IDEAS

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    More about this item


    Labor Force; Employment; Size; and Structure;
    All these keywords.

    JEL classification:

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

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