Seminar in Empirical Microeconomics - Welfare, Workfare and Labor Supply: A Unified Evaluation
Wann
Donnerstag, 2. Juni 2022
13:30 bis 15 Uhr
Wo
H309
Veranstaltet von
Lehrstuhl für Politische Ökonomie
Vortragende Person/Vortragende Personen:
Giuseppe Sorrenti (Universiteit van Amsterdam)
Welfare, Workfare and Labor Supply: A Unified Evaluation
(mit Francesco Agostinelli und Emilio Borghesan)
Abstract: We analyze the extent to which labor supply responds to incentives created by social programs in the United States. We find evidence that the incentive and disincentive effects of the EITC and welfare programs on hours worked among single mothers are more extensive than previously found in the literature. We also show that the difference-in-differences design, frequently adopted in the existing literature, fails to identify a meaningful treatment parameter in the context of the welfare-to-workfare transition in the 1990s. Finally, we use our quasi-experimental estimates to identify a structural model of labor supply with multiple tax and transfer programs. Model counterfactuals show that the EITC’s effect on labor supply depends on the regime of taxes and welfare system in place.