Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278884 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16186
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
I investigate the labor supply effects of the introduction of a large unconditional cash benefit. I exploit the unique design of the child benefit program in Poland to identify the income effects of the monthly transfer in a difference-in-differences design. On average, the marginal propensity to earn out of unearned income was equal to -0.14. For every extra 100 dollars in monthly child benefit transfers households receive, they spend 43 dollars on consumption and save 43 dollars. Additional evidence shows that the program had a positive impact on investments in human capital and home production efficiency.
Subjects: 
unconditional cash transfer
income effects
labor supply
child benefit
poverty
difference-in-differences
JEL: 
I38
J21
J22
Document Type: 
Working Paper

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