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

20/08/2018 |  Mazar Yuval
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Social and Welfare Policy
Abstract:

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.​

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