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The “Family 500+” child allowance and female labour supply in Poland

Author

Listed:
  • Iga Magda
  • Aneta Kielczewska
  • Nicola Brandt

Abstract

In 2016 the Polish government introduced a large new child benefit, called “Family 500+”, with the aim to increase fertility from a low level and reduce child poverty. The benefit is universal for the second and every further child and means-tested for the first child. Increasing out-of-work income significantly, the transfer reduces incentives to participate in the labour market through an income effect. We study the impact of the new benefit on female labour supply, using Polish Labour Force Survey data. Based on a difference-in-differences methodology we find that the labour market participation rates of women with children decreased after the introduction of the benefit compared to childless women. The estimates suggest that by mid-2017 the labour force participation rate of mothers dropped by 2.4 pp as a result of the 500+ benefit. The effect was higher among women with lower levels of education and living in small towns.

Suggested Citation

  • Iga Magda & Aneta Kielczewska & Nicola Brandt, 2018. "The “Family 500+” child allowance and female labour supply in Poland," IBS Working Papers 01/2018, Instytut Badan Strukturalnych.
    • Handle: RePEc:ibt:wpaper:wp012018
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    References listed on IDEAS

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    Cited by:

    1. Jakub Sawulski, 2017. "Is Poland a welfare state?," IBS Policy Papers 02/2017, Instytut Badan Strukturalnych.
    2. Maciej Załuski & Marta Makara-Studzińska, 2022. "Latent Occupational Burnout Profiles of Working Women," IJERPH, MDPI, vol. 19(11), pages 1-14, May.
    3. Luis Laguinge, 2020. "Protección social y participación laboral: impacto de la extensión del régimen de asignaciones familiares en Argentina en 2016," Asociación Argentina de Economía Política: Working Papers 4363, Asociación Argentina de Economía Política.
    4. Krzysztof Bartosik, 2020. "Świadczenia pieniężne na rzecz dzieci a podaż pracy kobiet w krajach OECD," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 83-110.
    5. Piotr Paradowski & Joanna Wolszczak-Derlacz & Eva Sierminska, 2020. "Inequality, Poverty and Child Benefits: Evidence from a Natural Experiment," LIS Working papers 799, LIS Cross-National Data Center in Luxembourg.
    6. Ruzik-Sierdzińska, Anna, 2018. "Krótkookresowe skutki programu Rodzina 500+," Studia z Polityki Publicznej / Public Policy Studies, Warsaw School of Economics, vol. 5(1), pages 1-14, January.
    7. Sarah Marchal & Linus Sióland, 2019. "A safety net that holds? Tracking minimum income protection adequacy for the elderly, the working and the non-working of active age," Working Papers 1909, Herman Deleeck Centre for Social Policy, University of Antwerp.

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    More about this item

    Keywords

    child allowance; social transfers; family policy; labour market participation;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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