The Effect of an Old-Age Demogrant on the Labor Supply and Time Use of the Elderly and Non-Elderly in Mexico
This paper investigates the effect of a generous demogrant for the elderly that started in 2001 in Mexico City on the labor supply and time use of the elderly and of non-elderly family members who live with them. Using data for the period 2000-2004 and a triple differences approach, I find that prime-age women reduce both their housework and market work time significantly, but only if they live with an age-qualifying woman in a poor neighborhood after the program started. In contrast, the program seems to have no significant effect on the time use of prime-age men. My results suggest that some of the public resources devoted to the elderly could actually spill over to other age groups, especially in countries where extended families are common, and that the gender of the potential beneficiary matters for outcomes.
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