Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272011 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10367
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study the effect of a CZK 80,000 (36%) increase in parental allowance, a universal basic income-type benefit, on the labor supply of parents in the Czech Republic. Drawing a parental allowance does not preclude labor market activity, which allows us to study the income effect. After the reform, mothers substantially prolonged the average period they drew an allowance. The labor market participation of mothers of young children decreased by 6 percentage points (15%). The estimated effect corresponds to a non-labor income labor supply elasticity at the extensive margin of about -0.5. The effect is particularly strong among mothers with their first child (10 p.p. or 28%) and among university-educated mothers (16 p.p. or 36%). We observe a virtually identical reduction in hours worked. We found no effect on the labor supply of fathers.
Subjects: 
parental allowance
maternal labor supply
income effect of social policy
Czech Republic
JEL: 
J13
J20
H53
Document Type: 
Working Paper
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