Cash Transfers and Labor Supply: New Evidence on Impacts and Mechanisms. A new GLO Discussion Paper by GLO Fellow Cuong Nguyen and Finn Tarp.

Discussion Paper, News, Post, Post-23

A new GLO Discussion Paper finds no evidence of a disincentive effect, and the transfer program in Vietnam causes the adults to move from self-employed non-farm work to wage-paying jobs.

GLO Discussion Paper No. 1243, 2023

Cash Transfers and Labor Supply: New Evidence on Impacts and Mechanisms – Download PDF
by Nguyen, Cuong Viet & Tarp, Finn

GLO Fellow Cuong Nguyen

Cuong Nguyen

Author Abstract: We study the impact of a national cash transfer program in Vietnam on labor supply using large household surveys and a regression-discontinuity design based on discontinuity in age eligibility. We do not find evidence of a disincentive effect of the cash transfer on labor supply for adults aged 15-64. More importantly, we find robust evidence that the transfer program causes the adults to move from self-employed non-farm work to wage-paying jobs. A likely mechanism is that the transfer program reduces the labor force participation of older people, and they help housework and childcare for younger adults to have wage-paying jobs.

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JUST PUBLISHED

Vol. 36, Issue 2, April 2023: Journal of Population Economics (JOPE) 16 articles.
https://link.springer.com/journal/148/volumes-and-issues/36-2

Vol. 36, Issue 1, January 2023: Journal of Population Economics (JOPE) 16 articles. https://link.springer.com/journal/148/volumes-and-issues/36-1
Watch the videos of article presentations on December 1, 2022 during the GLO Global Conference 2022.

JOPE has CiteScore 6.5 (2021, LINK) & Impact Factor 4.7 (2021, LINK)

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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