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Child Benefit Reform and Labor Market Participation

Author

Listed:
  • Tamm Marcus

    (Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Hohenzollernstr. 1-3, 45128 Essen, Germany)

Abstract
This paper examines the impact of a change in the German child benefit system in 1996, which led to a large increase in lump sum transfers to families with children.We analyze the impact on the labor force participation of women. Comparing behavioral changes of women with children with behavioral changes of women without children, we find that mothers with a working partner and children above age six considerably reduced the number of working hours (conditional on participation). Participation rates however did not decrease.

Suggested Citation

  • Tamm Marcus, 2010. "Child Benefit Reform and Labor Market Participation," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(3), pages 313-327, June.
  • Handle: RePEc:jns:jbstat:v:230:y:2010:i:3:p:313-327
    DOI: 10.1515/jbnst-2010-0304
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    References listed on IDEAS

    as
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    9. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-799, July.
    10. Pencavel, John, 1987. "Labor supply of men: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 1, pages 3-102, Elsevier.
    11. repec:bla:germec:v:11:y:2010:i::p:150-168 is not listed on IDEAS
    12. Tamm Marcus, 2010. "Child Benefit Reform and Labor Market Participation," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(3), pages 313-327, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Klemm, Marcus, 2012. "Job Security and Fertility: Evidence from German Reunification," Ruhr Economic Papers 379, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Regina T. Riphahn & Frederik Wiynck, 2017. "Fertility effects of child benefits," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(4), pages 1135-1184, October.
    3. Santiago Garganta & Joaquín Zentner, 2020. "Efecto de la Doble Escolaridad sobre la Participación Laboral Femenina en República Dominicana," Asociación Argentina de Economía Política: Working Papers 4348, Asociación Argentina de Economía Política.
    4. Serrano, Joaquín & Gasparini, Leonardo & Marchionni, Mariana & Glüzmann, Pablo, 2019. "Economic cycle and deceleration of female labor force participation in Latin America," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 53(1), pages 1-13.
    5. Tamm Marcus, 2010. "Child Benefit Reform and Labor Market Participation," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(3), pages 313-327, June.
    6. Timo Hener, 2016. "Unconditional Child Benefits, Mothers’ Labor Supply, and Family Well-Being: Evidence from a Policy Reform," CESifo Economic Studies, CESifo Group, vol. 62(4), pages 624-649.
    7. Bartosik Krzysztof, 2023. "The Family 500+ benefit and changes in female employment in Poland," Central European Economic Journal, Sciendo, vol. 10(57), pages 23-34, January.
    8. Grossmann, Jakub & Pertold, Filip & Šoltés, Michal, 2024. "Parental allowance increase and labor supply: Evidence from a Czech reform," Labour Economics, Elsevier, vol. 89(C).
    9. Helmut Rainer & Stefan Bauernschuster & Natalia Danzer & Anita Fichtl & Timo Hener & Christian Holzner & Janina Reinkowski & Anita Dietrich, 2013. "Kindergeld und Kinderfreibeträge in Deutschland: Evaluierung der Auswirkungen auf familienpolitische Ziele," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(09), pages 28-36, April.
    10. repec:ces:ifodic:v:12:y:2014:i:1:p:19108857 is not listed on IDEAS
    11. Shun‐ichiro Bessho, 2018. "Child Benefit, Tax Allowances and Behavioural Responses: The Case of Japanese Reform, 2010–2011," The Japanese Economic Review, Japanese Economic Association, vol. 69(4), pages 478-501, December.
    12. Christian Raschke, 2012. "The Impact of the German Child Benefit on Child Well-Being," SOEPpapers on Multidisciplinary Panel Data Research 520, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Hanel Barbara & Riphahn Regina T., 2012. "The Employment of Mothers – Recent Developments and their Determinants in East and West Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(2), pages 146-176, April.
    14. Horacio Levy & Manos Matsaganis & Holly Sutherland, 2013. "Towards a European Union Child Basic Income? Within and between country effects," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 63-85.
    15. Helmut Rainer & Stefan Bauernschuster & Natalia Danzer & Timo Hener & Christian Holzner & Janina Reinkowski, 2013. "Kindergeld," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 60.
    16. repec:iab:iabjlr:v:53:i:1:p:art.13 is not listed on IDEAS
    17. Asakawa, Shinsuke & Sasaki, Masaru, 2020. "Can Childcare Benefits Increase Maternal Employment? Evidence from Childcare Benefits Policy in Japan," IZA Discussion Papers 13589, Institute of Labor Economics (IZA).
    18. Asakawa, Shinsuke & Sasaki, Masaru, 2022. "Can child benefit reductions increase maternal employment? Evidence from Japan," Journal of the Japanese and International Economies, Elsevier, vol. 66(C).
    19. Jensen, Mathias Fjællegaard & Blundell, Jack, 2024. "Income effects and labour supply: Evidence from a child benefits reform," Journal of Public Economics, Elsevier, vol. 230(C).
    20. Jensen, Mathias Fjællegaard & Blundell, Jack, 2023. "Income effects and labour supply: evidence from a child benefits reform," LSE Research Online Documents on Economics 121357, London School of Economics and Political Science, LSE Library.
    21. Joaquín Serrano & Leonardo Gasparini & Mariana Marchionni & Pablo Glüzmann, 2019. "Economic cycle and deceleration of female labor force participation in Latin America," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-21, December.
    22. Santiago Garganta & Leonardo Gasparini & Mariana Marchionni, 2017. "Cash transfers and female labor force participation: the case of AUH in Argentina," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-22, December.
    23. C. Katharina Spieß, 2011. "Vereinbarkeit von Familie und Beruf – wie wirksam sind deutsche „Care Policies“?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(s1), pages 4-27, May.

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    More about this item

    Keywords

    Child support; labor supply; program evaluation; Child support; labor supply; program evaluation;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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