Template-type: ReDif-Paper 1.0
Author-Name: Mideros A. 
Author-Name: O'Donoghue C. 
Author-workplace-name: UNU-MERIT
Title: The effect of unconditional cash transfers on adult labour supply: A unitary discrete choice model for the case of Ecuador
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, do 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.
Keywords: Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes; Fiscal Policies and Behavior of Economic Agents: General; Time Allocation and Labor Supply; Microeconomic Analyses of Economic Development; 
Classification-JEL: H24; H30; J22; O12; .
Series:  Working Papers
Creation-Date: 2014
Number: 063
File-URL: http://pub.maastrichtuniversity.nl/8f318478-e43a-4ef0-86b5-5f6820069024
File-Format: application/pdf
File-Size: 329095
Handle: RePEc:unm:unumer:2014063