The effect of child benefit on female labor supply

Magda, Iga; Kiełczewska, Aneta; Brandt, Nicola

doi:10.2478/izajolp-2020-0017

Cited by 17 publications

(12 citation statements)

References 15 publications

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“…With respect to the first kind of policy, González (2013) shows a negative short-run effect on maternal labour supply after the introduction of a one-off unconditional cash transfer of (e) 2,500 for new mothers in Spain. Magda et al (2020) conclude that the introduction of a universal benefit for the second and every further child in Poland reduced mother's labour market participation, especially among women with lower levels of education. Asakawa and Sasaki (2020) found that a reduction in the Japanese child benefit led to an increase in the participation rate of mothers of young children.…”

Section: Family Policies and Their Impact On Gender Equalitymentioning

confidence: 89%

Work and children in Spain: challenges and opportunities for equality between men and women

Hupkau

Ruiz-Valenzuela

2021

SERIEs

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Over the past decades, Spain has seen a striking convergence between women’s and men’s participation in the labour market. However, this convergence has stalled since the early 2010s. We show that women still fare worse in several important labour market dimensions. Gender inequalities are further aggravated among people with children. Women with children under 16 are much more likely to be unemployed, work part-time or on temporary contracts than men with children of the same age. We show that it is unlikely that preferences alone can account for these gaps. A review of the evidence shows that family policies, such as paternity leave expansions, financial incentives in the form of tax credits for working mothers and subsidised or free childcare for very young children, could help reduce the motherhood penalty. However, such policies are likely to be more effective if combined with advances in breaking up traditional gender roles.

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Section: Family Policies and Their Impact On Gender Equalitymentioning

confidence: 89%

Work and children in Spain: challenges and opportunities for equality between men and women

Hupkau

Ruiz-Valenzuela

2021

SERIEs

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“…Earlier Polish studies provide divergent assessments of the impact of the Family 500+ benefit on the economic activity of women. Several studies (e.g., Myck, 2016;Ruzik-Sierdzińska, 2017;Magda et al, 2020;Myck & Trzciński, 2019;Krajewski & Zalega, 2020) suggest that the child benefit reduced the female labour supply, particularly for those who are less educated, live in regions (towns) with low per capita income, and are younger. For instance, according to Magda et al (2020), the Family 500+ benefit caused a drop in labour force participation rate of mothers by 2 to 3 percentage points by mid-2017.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Several studies (e.g., Myck, 2016;Ruzik-Sierdzińska, 2017;Magda et al, 2020;Myck & Trzciński, 2019;Krajewski & Zalega, 2020) suggest that the child benefit reduced the female labour supply, particularly for those who are less educated, live in regions (towns) with low per capita income, and are younger. For instance, according to Magda et al (2020), the Family 500+ benefit caused a drop in labour force participation rate of mothers by 2 to 3 percentage points by mid-2017. Conversely, however, recent works by Gromadzki (2021) and Premik (2022) show that child benefits either only slightly decrease labour supply or have no significant effect.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The effects of the Family 500+ benefit have been the subject of intense debate (e.g., Myck, 2016;Ruzik-Sierdzińska, 2017;Myck & Trzciński, 2019;Magda et al, 2020;Bartosik, 2020;Krajewski & Zalega, 2020;Gromadzki, 2021;Premnik, 2022). Most studies have used individual data, microeconomic approaches and analysis of changes in female employment or labour supply.…”

Section: Introductionmentioning

confidence: 99%

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The Family 500+ benefit and changes in female employment in Poland

Bartosik

2023

Central European Economic Journal

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This paper investigates the relationship between the implementation of the Family 500+ benefit, changes in female employment and female economic inactivity. The analysis is based on macro data and is focused on the years 2016–2019. To examine the relationship, this study uses decomposition of the employment-to-population ratio change into labour supply and unemployment components, analysis of changes in the structure of nonparticipants and the shift-share method. Considering that the reaction to the child benefit may differ across age groups, this study found that since the introduction of the Family 500+ benefit, the employment-to-population ratio for women aged 25–39 (the most likely age group to be raising children and therefore to receive the benefit) stagnated, their labour force participation rate decreased and the percentage of nonparticipants due to family and household responsibilities increased.

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“…Hence, we did not observe this effect directly due to the time span we analysed. Nevertheless, research has provided evidence of the non-negligible impact of this programme on labour force participation (compareMagda et al, 2020).…”

mentioning

confidence: 99%

Separating aggregate discouraged and added worker effects: the case of a former transition country

Congregado

Gałecka‐Burdziak

Golpe

et al. 2021

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Research background: We analyse the added worker effect (AWE) and the discouraged worker effect (DWE) from an aggregate perspective. The first effect refers to an increase in labour force participation in response to a decrease in the wage rate. The second effect refers to the decision by workers who have been unsuccessful in their job search to leave the labour market or to decrease their labour force participation. For our analysis, we use the case of Poland, a country with a persistently low labour force participation rate. Purpose of the article: While previous studies focused on the net of the two effects, we aim to analyse the two effects both separately and simultaneously. We propose a new approach for analysing the two effects. We generalise and model them as resulting from different shocks: (i) the AWE as the result of a negative wage income shock, and (ii) the DWE as the result of a positive job search time shock. The underlying assumption is that both shocks have at least a transitory effect on the labour force participation rate. However, we also track the potential long-lasting effects of these shocks, and we analyse the reactions of gender and age groups to them. While this approach demonstrates the robustness of our results, it also provides the range of the sensitivity, as it shows that there are large differences in the magnitude of the AWE and the DWE for different labour market cohorts. Methods: We use the multivariate unobserved component model to extract the AWE and the DWE, and we then use VAR models, applying sign and exclusion restrictions to model the underlying shocks. We use quarterly data for Poland in 1995?2019. Most of these data come from the Labour Force Survey, while the rest come from Statistics Poland. Findings & value added: In contrast to previous literature, which analysed only the net effect of the two effects, we model the AWE and the DWE separately. Contrary to the findings of previous research, our approach seems to confirm that both effects are simultaneously present in the labour market, and both effects influence the labour force participation rate. Thus, we find that both effects are significant. Specifically, we show that the AWE is stronger, but transitory; while the DWE is weaker, but long-lasting.

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The effect of child benefit on female labor supply

Cited by 17 publications

References 15 publications

Work and children in Spain: challenges and opportunities for equality between men and women

Work and children in Spain: challenges and opportunities for equality between men and women

The Family 500+ benefit and changes in female employment in Poland

Separating aggregate discouraged and added worker effects: the case of a former transition country

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