Dear colleagues,

Jan Gromadzki (WU Vienna) will present his paper “Universal Child Benefits and Child Poverty: Accounting For Fertility and Labor Supply Adjustments” in the INEQ Research Seminar on Monday, November 27, 3.00 p.m. at the INEQ Institute D3.0.259 (WU Vienna University of Economics and Business).

Abstract

I study changes in selection into parenthood after the introduction of a large universal child benefit in Poland. The patterns of selection have changed significantly and persistently, as positive selection on education has weakened and negative selection on income has strengthened. The gap in birth rates between low-income and high-income couples exceeded 50%, in a stark contrast to zero gaps in the pre-introduction period. In a microsimulation approach, I combine the birth rate changes and existing estimates of the labor supply effects of the transfer to study the impact of these adjustments on poverty reduction associated with the transfer. The negative supply responses reduced the extent of poverty reduction by 27% and fertility adjustments further reduced poverty reduction by 5%.

Please register here.

Best regards,

Franziska Disslbacher