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The labour supply effect of a partial cash-out of in-kind transfers to single mothers

Bingley, Paul and Walker, Ian (2013) The labour supply effect of a partial cash-out of in-kind transfers to single mothers. IZA Journal of Labor Economics, 2 (1). ISSN 2193-8997

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      Abstract

      We estimate a model of labour supply and participation in multiple cash and in-kind welfare programmes. The modeling exploits a reform that affected U.K. single mothers. In-work cash entitlements increased under this reform but eligibility to in-kind child nutrition programmes was lost for some households. When we allow for differences in the costs associated with each welfare programme we find that in-work cash and in-work in-kind transfers both have large positive labour supply effects. There is, however, a utility loss from programme participation which is estimated to be larger for the cash programme than for the child nutrition programmes. Our findings imply that the partial cash out of the in-kind transfers reduced labour supply and suggest that there may be a place in policy portfolios for in-kind programmes despite their “inefficiency”.

      Item Type: Article
      Journal or Publication Title: IZA Journal of Labor Economics
      Additional Information: © 2013 Bingley and Walker; licensee Springer. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/2.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
      Uncontrolled Keywords: labor supply ; program participation ; in-kind transfers
      Subjects: UNSPECIFIED
      Departments: Lancaster University Management School > Economics
      ID Code: 48957
      Deposited By: ep_importer_pure
      Deposited On: 11 Jul 2011 22:24
      Refereed?: Yes
      Published?: Published
      Last Modified: 06 Jun 2014 15:02
      Identification Number:
      URI: http://eprints.lancs.ac.uk/id/eprint/48957

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