Publication:
The Effects of Cash Transfers on Adult Labor Market Outcomes

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dc.contributor.authorBaird, Sarah
dc.contributor.authorMcKenzie, David
dc.contributor.authorOzler, Berk
dc.date.accessioned2018-04-20T13:57:53Z
dc.date.available2018-04-20T13:57:53Z
dc.date.issued2018-04
dc.description.abstractThe basic economic model of labor supply has a very clear prediction of what should be expected when an adult receives an unexpected cash windfall: they should work less and earn less. This intuition underlies concerns that many types of cash transfers, ranging from government benefits to migrant remittances, will undermine work ethics and make recipients lazy. This paper discusses a range of additional channels to this simple labor-leisure trade-off that can make this intuition misleading in low- and middle-income countries, including missing markets, price effects from conditions attached to transfers, and dynamic and general equilibrium effects. The paper uses this as a lens through which to examine the evidence on the adult labor market impacts of a wide range of cash transfer programs: government transfers, charitable giving and humanitarian transfers, remittances, cash assistance for job search, cash transfers for business start-up, and bundled interventions. Overall, cash transfers that are made without an explicit employment focus (such as conditional and unconditional cash transfers and remittances) tend to result in little to no change in adult labor. The main exceptions are transfers to the elderly and some refugees, who reduce work. In contrast, transfers made for job search assistance or business start-up tend to increase adult labor supply and earnings, with the likely main channels being the alleviation of liquidity and risk constraints.en
dc.identifierhttp://documents.worldbank.org/curated/en/334251523556191237/The-effects-of-cash-transfers-on-adult-labor-market-outcomes
dc.identifier.doi10.1596/1813-9450-8404
dc.identifier.urihttps://hdl.handle.net/10986/29707
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8404
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectCASH TRANSFERS
dc.subjectLABOR SUPPLY
dc.subjectREMITTANCES
dc.subjectCONDITIONAL CASH TRANSFERS
dc.subjectEMPLOYMENT
dc.titleThe Effects of Cash Transfers on Adult Labor Market Outcomesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleThe Effects of Cash Transfers on Adult Labor Market Outcomes
okr.date.disclosure2018-04-12
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/334251523556191237/The-effects-of-cash-transfers-on-adult-labor-market-outcomes
okr.guid334251523556191237
okr.identifier.doi10.1596/1813-9450-8404
okr.identifier.externaldocumentum090224b0858cf278_1_0
okr.identifier.internaldocumentum29802167
okr.identifier.reportWPS8404
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/334251523556191237/pdf/WPS8404.pdfen
okr.statistics.combined5636
okr.statistics.dr334251523556191237
okr.statistics.drstats4670
okr.topicPoverty Reduction::Conditional Cash Transfers
okr.topicRural Development::Rural Labor Markets
okr.topicSocial Protections and Labor::Employment and Unemployment
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Safety Nets and Transfers
okr.unitDevelopment Research Group
relation.isAuthorOfPublication148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isAuthorOfPublication0a0a54f4-c5cd-546c-beb1-081f9b777824
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