Cash Transfers and Labor Supply: New Evidence on Impacts and Mechanisms

Cuong Nguyen and Finn Tarp

No 23-18, DERG working paper series from University of Copenhagen. Department of Economics. Development Economics Research Group (DERG)

Abstract: We study the impact of a national cash transfer program in Vietnam on labor supply using large household surveys and a regression-discontinuity design based on discontinuity in age eligibility. We do not find evidence of a disincentive effect of the cash transfer on labor supply for adults aged 15-64. More importantly, we find robust evidence that the transfer program causes the adults to move from self-employed non-farm work to wage-paying jobs. A likely mechanism is that the transfer program reduces the labor force participation of older people, and they help housework and childcare for younger adults to have wage-paying jobs.

Keywords: Cash transfer; social security; employment; labor market participation; Vietnam (search for similar items in EconPapers)
JEL-codes: H55 J22 N35 (search for similar items in EconPapers)
Pages: 75
Date: 2023-01-04
New Economics Papers: this item is included in nep-dev, nep-lma, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Cash Transfers and Labor Supply: New Evidence on Impacts and Mechanisms (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuderg:2318

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