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The Effect of the Universal Child Care Cash Benefit on Female Labour Supply in Spain
[journal article]
Abstract The aim of this paper is to measure the potential and real effect of universal child care cash benefit schemes on female labour supply. This subsidy, which was considered ground-breaking due to the fact that it was available to all, was introduced through the Spanish Government Act 35/2007 (BOE, 200... view more
The aim of this paper is to measure the potential and real effect of universal child care cash benefit schemes on female labour supply. This subsidy, which was considered ground-breaking due to the fact that it was available to all, was introduced through the Spanish Government Act 35/2007 (BOE, 2007) and was in effect until 2010. Known as the "baby bonus", this subsidy of €2,500 per child born aimed to increase the birth rate in Spain. The introduction of this family policy provides a unique setting for a quasi-experiment, using semi-parametric DiD analysis and individual panel data sourced from the EU-SILC dataset. The results provide evidence of the positive effect of a cash-for-care subsidy that reduces the costs of a new child and increases female labour supply.... view less
Keywords
Spain; child care; working woman; labor force participation; available workers
Classification
Employment Research
Family Policy, Youth Policy, Policy on the Elderly
Free Keywords
EU-SILC; female labour supply; Spanish "Baby Bonus"; DiDMethod
Document language
English
Publication Year
2017
Page/Pages
p. 801-818
Journal
Estudios de economía aplicada / Studies of Applied Economics, 35 (2017) 3
Issue topic
Crisis, Economy and Finance
DOI
https://doi.org/10.25115/eea.v35i3.2508
ISSN
1697-5731
Status
Published Version; peer reviewed
Licence
Creative Commons - Attribution-NonCommercial-ShareAlike 4.0