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Parental allowance increase and labor supply: evidence from a Czech reform

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F24%3A00604641" target="_blank" >RIV/67985998:_____/24:00604641 - isvavai.cz</a>

  • Alternative codes found

    RIV/00025950:_____/24:N0000061 RIV/00216208:11220/24:10483588 RIV/00216208:11640/24:00597966

  • Result on the web

    <a href="https://doi.org/10.1016/j.labeco.2024.102589" target="_blank" >https://doi.org/10.1016/j.labeco.2024.102589</a>

  • DOI - Digital Object Identifier

    <a href="http://dx.doi.org/10.1016/j.labeco.2024.102589" target="_blank" >10.1016/j.labeco.2024.102589</a>

Alternative languages

  • Result language

    angličtina

  • Original language name

    Parental allowance increase and labor supply: evidence from a Czech reform

  • Original language description

    We study the effect of a substantial increase (36%) in parental allowance, a universal basic income-type benefit, on the labor supply of parents of young children in the Czech Republic. Parental allowance does not preclude labor market activity, which allows us to estimate the income effect. We find that the reform resulted in a 4.8 percentage point (11%) decrease in labor market participation of mothers of young children. Mothers with only one child (7.8 p.p., 20%) and university-educated mothers (17 p.p., 32%) reacted particularly strongly. The percentage reduction in hours worked was virtually identical to that in labor force participation. We argue that the sizeable labor supply reduction was driven by the option to extend the parental allowance period, which enabled mothers to postpone their return to work. We find no effect on the labor supply of fathers of young children.

  • Czech name

  • Czech description

Classification

  • Type

    J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database

  • CEP classification

  • OECD FORD branch

    50202 - Applied Economics, Econometrics

Result continuities

  • Project

    <a href="/en/project/LX22NPO5101" target="_blank" >LX22NPO5101: The National Institute for Research on the Socioeconomic Impact of Diseases and Systemic Risks</a><br>

  • Continuities

    I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Others

  • Publication year

    2024

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Name of the periodical

    Labour Economics

  • ISSN

    0927-5371

  • e-ISSN

    1879-1034

  • Volume of the periodical

    89

  • Issue of the periodical within the volume

    August

  • Country of publishing house

    NL - THE KINGDOM OF THE NETHERLANDS

  • Number of pages

    13

  • Pages from-to

    102589

  • UT code for WoS article

    001287999400001

  • EID of the result in the Scopus database

    2-s2.0-85197557856