<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In 2016, the Polish government introduced a large child benefit, called “Family 500+”, with the aim to increase fertility and reduce child poverty. It is universal for the second and every further child and means-tested for the first child. We study the impact of the new benefit on female labor supply, using Labor Force Survey data. Based on a difference-in-differences methodology, we find that the labor market participation rates of women with children decreased after the introduction of the benefit compared to that of childless women. The labor force participation rate of mothers showed a drop of 2–3 percentage points by mid-2017 as a result of the “Family 500+” program. The effect was higher among women with lower levels of education and among women living in small towns.</p></abstract>

In 2016, the Polish government introduced a large child benefit, called “Family 500+”, with the aim to increase fertility and reduce child poverty. It is universal for the second and every further child and means-tested for the first child. We study the impact of the new benefit on female labor supply, using Labor Force Survey data. Based on a difference-in-differences methodology, we find that the labor market participation rates of women with children decreased after the introduction of the benefit compared to that of childless women. The labor force participation rate of mothers showed a drop of 2–3 percentage points by mid-2017 as a result of the “Family 500+” program. The effect was higher among women with lower levels of education and among women living in small towns.

The effect of child benefit on female labor supply

IZA Journal of Labor Policy

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"The effect of child benefit on female labor supply"}

In 2016, the Polish government introduced a large child benefit, called “Family 500+”, with the aim to increase fertility and reduce child poverty. It is...

The effect of child benefit on female labor supply

Published Online: Dec 17, 2020

Page range: -

DOI: https://doi.org/10.2478/izajolp-2020-0017

Keywords
child allowance, social transfers, family policy, labor market participation

© 2020 Iga Magda, Aneta Kiełczewska and Nicola Brandt, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The effect of child benefit on female labor supply

Published Online: Dec 17, 2020

Page range: -

DOI: https://doi.org/10.2478/izajolp-2020-0017

Keywordschild allowance, social transfers, family policy, labor market participation

© 2020 Iga Magda, Aneta Kiełczewska and Nicola Brandt, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
child allowance, social transfers, family policy, labor market participation