Labour Supply Effects of a Large Unconditional Cash Transfer

Jan Gromadzki , Institute for Structural Research and Warsaw School of Economics

The proposals of unconditional cash transfers in a form of universal basic income, universal basic pension or universal child benefit become increasingly discussed in many countries. My paper answers the question on how the unconditional cash benefit affect the individual labour supply. I exploit the unique design of the child benefit program in Poland to identify the labour supply response to the unconditional component of the child benefit. I find that the effects of introducing universal child benefit on maternal labour supply are statistically insignificant and neglibile.

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 Presented in Session 49. Flash Session Policy and Practice