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The Labor Supply Effect of In-Kind Transfers

Author

Listed:
  • Paul Bingley

    (Danish National Centre for Social Research, Herluf Trolles Gade 11, DK-1052 Copenhagen, Denmark)

  • Ian Walker

    (Lancaster University Management School, Lancaster LA1 4YX, UK)

Abstract

We estimate a model of labor supply and participation in multiple programs for UK lone mothers which exploits a reform of in-work transfers. Cash entitlements increased but eligibility to in-kind child nutrition programs was lost. We find that in-work cash and inwork in-kind transfers both have large positive labor supply effects. There is, however, a utility loss from program participation which is estimated to be larger for cash than for child nutrition. This implies that the partial cash out of the in-kind benefits reduced labor supply.

Suggested Citation

  • Paul Bingley & Ian Walker, 2008. "The Labor Supply Effect of In-Kind Transfers," Working Papers 200820, Geary Institute, University College Dublin.
  • Handle: RePEc:ucd:wpaper:200820
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    File URL: http://www.ucd.ie/geary/static/publications/workingpapers/gearywp200820.pdf
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    References listed on IDEAS

    as
    1. Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2009. "Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 109-139, October.
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    Cited by:

    1. David Neumark & William Wascher, 2011. "Does a Higher Minimum Wage Enhance the Effectiveness of the Earned Income Tax Credit?," ILR Review, Cornell University, ILR School, vol. 64(4), pages 712-746, July.

    More about this item

    Keywords

    labor supply; program participation; in-kind transfers;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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