The “Family 500+” child allowance and female labour supply in Poland

Iga Magda, Aneta Kiełczewska and Nicola Brandt ()

No 01/2018, IBS Working Papers from Instytut Badan Strukturalnych

Abstract: In 2016 the Polish government introduced a large new child benefit, called “Family 500+”, with the aim to increase fertility from a low level and reduce child poverty. The benefit is universal for the second and every further child and means-tested for the first child. Increasing out-of-work income significantly, the transfer reduces incentives to participate in the labour market through an income effect. We study the impact of the new benefit on female labour supply, using Polish Labour Force Survey data. Based on a difference-in-differences methodology we find that the labour market participation rates of women with children decreased after the introduction of the benefit compared to childless women. The estimates suggest that by mid-2017 the labour force participation rate of mothers dropped by 2.4 pp as a result of the 500+ benefit. The effect was higher among women with lower levels of education and living in small towns.

Keywords: child allowance; social transfers; family policy; labour market participation (search for similar items in EconPapers)
JEL-codes: E24 H53 I38 J13 J21 J22 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2018-03
New Economics Papers: this item is included in nep-eur and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: The "family 500+" child allowance and female labour supply in Poland (2018)
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