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The differential impact of universal child benefits on the labor supply of married and single mothers

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  • Kourtney Koebel, Tammy Schirle

    () (Wilfrid Laurier University)

Abstract

Using a difference-in-differences estimator, we find the Canadian Universal Child Care Benefit (a demogrant paid to families with children under age 6 that was introduced in July 2006) has significant negative effects on the labor supply of legally married mothers but significant positive effects on the labor supply of single mothers. The positive effect for single mothers is concentrated among divorced mothers, with results suggesting divorced mothers’ likelihood of participating in the labor force rises by 2.8 percentage points when receiving the benefit. This contrasts with a reduction in the likelihood of legally married mothers participating in the labor force by 1.4 percentage points. Further, the effects for single moms primarily represent entry to employment and the labor force (extensive margin) and not an increase in hours among those who would have been working without the benefits. The estimated effects for common-law married mothers and single never-married mothers are not statistically significant.

Suggested Citation

  • Kourtney Koebel, Tammy Schirle, 2015. "The differential impact of universal child benefits on the labor supply of married and single mothers," LCERPA Working Papers 0094, Laurier Centre for Economic Research and Policy Analysis, revised 01 May 2015.
  • Handle: RePEc:wlu:lcerpa:0094
    Note: LCERPA Working Paper No. 2015-11
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    Cited by:

    1. Magda, Iga & Kiełczewska, Aneta & Brandt, Nicola, 2018. "The Effects of Large Universal Child Benefits on Female Labour Supply," IZA Discussion Papers 11652, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Labour supply; public policy; child benefits; demogrant;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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