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The Effect of Unconditional Cash Transfers on Adult Labour Supply: A Unitary Discrete Choice Model for the Case of Ecuador

Year: 2015

Type: article

Abstract: We examine the effect of unconditional cash transfers by a unitary discrete labour supply model. We argue that there is no negative income effect of social transfers in the case of poor adults because leisure could not be assumed to be a normal good under such conditions. Using data from the national employment survey of Ecuador (ENEMDUR) we estimate the effect of the Bono de Desarrollo Humano (BDH). Results show that cash transfers, unconditional in labour, does not produce labour disincentives in the case of household heads, but may be paying for housework and childcare provided by partners and single adults. However, labour market and care work gender inequality must be addressed by complementary policies.

Source: Basic Income Studies

DOI: 10.1515/bis-2014-0016

Authors: Andrés Mideros, Cathal O’Donoghue

Institutions: United Nations University – Maastricht Economic and Social Research Institute on Innovation and Technology, Maastricht University, Teagasc - The Irish Agriculture and Food Development Authority

Language: English

Topic: Gender, Labor, and Family Dynamics

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDGs: No poverty, Decent work and economic growth, Reduced inequalities

Open Access status: bronze

Funders: Universiteit Maastricht, Maastricht Economic and Social Research Institute on Innovation and Technology, United Nations University