Pub Date : 2020-03-06DOI: 10.2478/izajolp-2021-0007
Andrés Ham, Darío Maldonado, Carlos Santiago Guzmán-Gutiérrez
Abstract This paper characterizes the labor market of youth in Colombia from 2008 to 2017. We estimate labor market indicators for individuals aged between 14 and 28 years using microdata from Colombia's household surveys over the study period. Our estimates document the main patterns and trends in the labor market of youth in labor force participation, employment, unemployment, informality, and earnings. We compare these statistics with the same indicators of adults (individuals aged between 29 and 65 years), and explore differences in characteristics within youth such as gender, region, educational attainment, socioeconomic status (SES), and experience. Results indicate that participation rate of young Colombians have increased in recent years, but are mainly employed in low-quality jobs namely unsalaried and informal. We also document marked inequalities in labor market outcomes across youth characteristics. We provide a series of recommendations to guide future youth labor policy based on these estimates as well as the critical analysis of recent youth policies in Colombia.
{"title":"Recent trends in the youth labor market in Colombia: Diagnosis and policy challenges","authors":"Andrés Ham, Darío Maldonado, Carlos Santiago Guzmán-Gutiérrez","doi":"10.2478/izajolp-2021-0007","DOIUrl":"https://doi.org/10.2478/izajolp-2021-0007","url":null,"abstract":"Abstract This paper characterizes the labor market of youth in Colombia from 2008 to 2017. We estimate labor market indicators for individuals aged between 14 and 28 years using microdata from Colombia's household surveys over the study period. Our estimates document the main patterns and trends in the labor market of youth in labor force participation, employment, unemployment, informality, and earnings. We compare these statistics with the same indicators of adults (individuals aged between 29 and 65 years), and explore differences in characteristics within youth such as gender, region, educational attainment, socioeconomic status (SES), and experience. Results indicate that participation rate of young Colombians have increased in recent years, but are mainly employed in low-quality jobs namely unsalaried and informal. We also document marked inequalities in labor market outcomes across youth characteristics. We provide a series of recommendations to guide future youth labor policy based on these estimates as well as the critical analysis of recent youth policies in Colombia.","PeriodicalId":45367,"journal":{"name":"IZA Journal of Labor Policy","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2020-03-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48023021","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-03-01DOI: 10.2478/izajolp-2020-0004
B. Bass
Abstract This paper studies how an introduction of paid parental leave (PPL) affects maternal labor market outcomes in the short run. Using a reform in Australia, the PPL scheme, that gave the primary caregiver of a child born or adopted on or after January 1 2011, $672.70 a week for a maximum of 18 weeks, this paper develops theoretical predictions of the effect of PPL on maternal labor market outcomes, and tests these predictions using confidential data from the Australian Pregnancy and Employment Transitions Survey. The theoretical results imply that after the introduction of PPL, hours of work in the pre-birth period should decrease for mothers who will qualify for PPL, and increase for mothers who are attempting to qualify for PPL. Post birth, the theoretical results imply that more mothers are out of work and on leave than would have been in the absence of PPL. The empirical results suggest that the PPL scheme had no significant effect on labor market outcomes pre birth or post birth.
{"title":"Does an Introduction of a Paid Parental Leave Policy Affect Maternal Labor Market Outcomes in the Short Run? Evidence from Australia’s Paid Parental Leave Scheme","authors":"B. Bass","doi":"10.2478/izajolp-2020-0004","DOIUrl":"https://doi.org/10.2478/izajolp-2020-0004","url":null,"abstract":"Abstract This paper studies how an introduction of paid parental leave (PPL) affects maternal labor market outcomes in the short run. Using a reform in Australia, the PPL scheme, that gave the primary caregiver of a child born or adopted on or after January 1 2011, $672.70 a week for a maximum of 18 weeks, this paper develops theoretical predictions of the effect of PPL on maternal labor market outcomes, and tests these predictions using confidential data from the Australian Pregnancy and Employment Transitions Survey. The theoretical results imply that after the introduction of PPL, hours of work in the pre-birth period should decrease for mothers who will qualify for PPL, and increase for mothers who are attempting to qualify for PPL. Post birth, the theoretical results imply that more mothers are out of work and on leave than would have been in the absence of PPL. The empirical results suggest that the PPL scheme had no significant effect on labor market outcomes pre birth or post birth.","PeriodicalId":45367,"journal":{"name":"IZA Journal of Labor Policy","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44816378","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-03-01DOI: 10.2478/izajolp-2020-0006
R. M. Torres
Abstract Labor informality and poverty are at high levels in Latin America. In developing countries, poverty and the labor market are related not through unemployment but through employment. The purpose of this paper is to analyze the link between labor informality and poverty in Colombia. To do so, earnings gaps associated with labor informality are estimated; then, the effect of formalization on poverty is calculated, as the influence of changes in labor informality on Colombia’s poverty reduction from 2002 to 2013. The findings show that the earnings gap between formal and informal workers is 37–44%, and if informality were eliminated, poverty would decrease by approximately 40%. However, even though informality has great potential to reduce poverty, its actual effect on Colombia’s poverty reduction in the years analyzed was low.
{"title":"Poverty and labor informality in Colombia","authors":"R. M. Torres","doi":"10.2478/izajolp-2020-0006","DOIUrl":"https://doi.org/10.2478/izajolp-2020-0006","url":null,"abstract":"Abstract Labor informality and poverty are at high levels in Latin America. In developing countries, poverty and the labor market are related not through unemployment but through employment. The purpose of this paper is to analyze the link between labor informality and poverty in Colombia. To do so, earnings gaps associated with labor informality are estimated; then, the effect of formalization on poverty is calculated, as the influence of changes in labor informality on Colombia’s poverty reduction from 2002 to 2013. The findings show that the earnings gap between formal and informal workers is 37–44%, and if informality were eliminated, poverty would decrease by approximately 40%. However, even though informality has great potential to reduce poverty, its actual effect on Colombia’s poverty reduction in the years analyzed was low.","PeriodicalId":45367,"journal":{"name":"IZA Journal of Labor Policy","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43432075","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-03-01DOI: 10.2478/izajolp-2020-0016
Enes Işık, Özgür Orhangazi, Hasan Tekgüç
Abstract We assess the effects of a sharp minimum wage increase on wages, informality, and employment in Turkey, a large developing economy with one of the highest minimum wage-to-average wage ratios among OECD countries and widespread discrepancies between labor market outcomes of women and of men. We look at the quasi-experimental 2016 minimum wage increase and pay attention to identifying information coming from demographic groups. We find that the increase in the minimum wage had an economically substantial and statistically significant positive impact on wages. Despite the positive wage effects of the increase, we find no negative employment effects. However, we show that the minimum wage increase may have caused an increase in the share of informal employment among workers with less than tertiary education, especially for such workers working for small firms.
{"title":"Heterogeneous effects of minimum wage on labor market outcomes: A case study from Turkey","authors":"Enes Işık, Özgür Orhangazi, Hasan Tekgüç","doi":"10.2478/izajolp-2020-0016","DOIUrl":"https://doi.org/10.2478/izajolp-2020-0016","url":null,"abstract":"Abstract We assess the effects of a sharp minimum wage increase on wages, informality, and employment in Turkey, a large developing economy with one of the highest minimum wage-to-average wage ratios among OECD countries and widespread discrepancies between labor market outcomes of women and of men. We look at the quasi-experimental 2016 minimum wage increase and pay attention to identifying information coming from demographic groups. We find that the increase in the minimum wage had an economically substantial and statistically significant positive impact on wages. Despite the positive wage effects of the increase, we find no negative employment effects. However, we show that the minimum wage increase may have caused an increase in the share of informal employment among workers with less than tertiary education, especially for such workers working for small firms.","PeriodicalId":45367,"journal":{"name":"IZA Journal of Labor Policy","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46348205","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-03-01DOI: 10.2478/izajolp-2020-0001
M. Mahesh
Abstract There is a well-established literature that finds a strong causal association between remittance flows and economic growth and poverty. Owing to the poverty-alleviating and income-generating effects of remittances, it may theoretically reduce crime by increasing the opportunity cost of committing crime. This paper studies the effects of remittance receipts on crime outcomes in India. The identification strategy, exploits the variation in rainfall as an instrument for remittance receipts. The results suggest that remittance receipts have a negative effect on violent crimes and a positive effect on nonviolent crimes. Since remittance flows mean that more economic resources are available, remittances provide an incentive for certain crimes that thrive in the presence of economic resources. Therefore, an important implication of this result is that as remittance receipts increase income and welfare, there is a diverse effect on the costs and benefits of different types of crimes. It may result in unfavorable outcomes in the form of increases in certain nonviolent crimes.
{"title":"The Effect of Remittances on Crime in India","authors":"M. Mahesh","doi":"10.2478/izajolp-2020-0001","DOIUrl":"https://doi.org/10.2478/izajolp-2020-0001","url":null,"abstract":"Abstract There is a well-established literature that finds a strong causal association between remittance flows and economic growth and poverty. Owing to the poverty-alleviating and income-generating effects of remittances, it may theoretically reduce crime by increasing the opportunity cost of committing crime. This paper studies the effects of remittance receipts on crime outcomes in India. The identification strategy, exploits the variation in rainfall as an instrument for remittance receipts. The results suggest that remittance receipts have a negative effect on violent crimes and a positive effect on nonviolent crimes. Since remittance flows mean that more economic resources are available, remittances provide an incentive for certain crimes that thrive in the presence of economic resources. Therefore, an important implication of this result is that as remittance receipts increase income and welfare, there is a diverse effect on the costs and benefits of different types of crimes. It may result in unfavorable outcomes in the form of increases in certain nonviolent crimes.","PeriodicalId":45367,"journal":{"name":"IZA Journal of Labor Policy","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46497752","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-03-01DOI: 10.2478/izajolp-2020-0009
Isabelle Sin, Nathan Chappell
Abstract Recent changes in New Zealand law decreased the cost of dismissing employees within their first 3 months with an employer, with the aim of encouraging firms to increase hiring by reducing the associated risk. We use monthly linked employer–employee data and exploit the staggered introduction of the policy to estimate its effect on hiring. We find that the policy had little effect on the number of hires, the hiring of jobseekers of unknown quality, or the stability of employment. Our results suggest that policies that temporarily lower dismissal costs do not necessarily increase firm hiring.
{"title":"The effect of trial periods in employment on firm hiring behavior","authors":"Isabelle Sin, Nathan Chappell","doi":"10.2478/izajolp-2020-0009","DOIUrl":"https://doi.org/10.2478/izajolp-2020-0009","url":null,"abstract":"Abstract Recent changes in New Zealand law decreased the cost of dismissing employees within their first 3 months with an employer, with the aim of encouraging firms to increase hiring by reducing the associated risk. We use monthly linked employer–employee data and exploit the staggered introduction of the policy to estimate its effect on hiring. We find that the policy had little effect on the number of hires, the hiring of jobseekers of unknown quality, or the stability of employment. Our results suggest that policies that temporarily lower dismissal costs do not necessarily increase firm hiring.","PeriodicalId":45367,"journal":{"name":"IZA Journal of Labor Policy","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141227215","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-03-01DOI: 10.2478/izajolp-2020-0017
I. Magda, Aneta Kiełczewska, N. Brandt
Abstract In 2016, the Polish government introduced a large child benefit, called “Family 500+”, with the aim to increase fertility and reduce child poverty. It is universal for the second and every further child and means-tested for the first child. We study the impact of the new benefit on female labor supply, using Labor Force Survey data. Based on a difference-in-differences methodology, we find that the labor market participation rates of women with children decreased after the introduction of the benefit compared to that of childless women. The labor force participation rate of mothers showed a drop of 2–3 percentage points by mid-2017 as a result of the “Family 500+” program. The effect was higher among women with lower levels of education and among women living in small towns.
{"title":"The effect of child benefit on female labor supply","authors":"I. Magda, Aneta Kiełczewska, N. Brandt","doi":"10.2478/izajolp-2020-0017","DOIUrl":"https://doi.org/10.2478/izajolp-2020-0017","url":null,"abstract":"Abstract In 2016, the Polish government introduced a large child benefit, called “Family 500+”, with the aim to increase fertility and reduce child poverty. It is universal for the second and every further child and means-tested for the first child. We study the impact of the new benefit on female labor supply, using Labor Force Survey data. Based on a difference-in-differences methodology, we find that the labor market participation rates of women with children decreased after the introduction of the benefit compared to that of childless women. The labor force participation rate of mothers showed a drop of 2–3 percentage points by mid-2017 as a result of the “Family 500+” program. The effect was higher among women with lower levels of education and among women living in small towns.","PeriodicalId":45367,"journal":{"name":"IZA Journal of Labor Policy","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44568091","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-03-01DOI: 10.2478/izajolp-2020-0003
Christian Gunadi
Abstract Low-skilled immigration has been argued to lower the price of services that are close substitutes for household production, reducing barriers for women to enter the labor market. Therefore, policies that reduce the number of low-skilled immigrants who work predominantly in low-skilled service occupations may have an unintended consequence of lowering women’s participation in the labor market. This article examines the labor supply impact of the Legal Arizona Workers Act (LAWA), which led to a large decline in the low-skilled immigrant workforce of the state. The analysis shows no evidence that LAWA statistically significantly affected US-born women’s labor supply in Arizona. This finding is partly explained by an increase in native workers in household service occupations due to LAWA, which offset the decline in immigrants in these occupations and caused the cost of household services to be relatively uninfluenced by the passage of LAWA.
{"title":"Examining the Impact of Legal Arizona Worker Act on Native Female Labor Supply in the United States","authors":"Christian Gunadi","doi":"10.2478/izajolp-2020-0003","DOIUrl":"https://doi.org/10.2478/izajolp-2020-0003","url":null,"abstract":"Abstract Low-skilled immigration has been argued to lower the price of services that are close substitutes for household production, reducing barriers for women to enter the labor market. Therefore, policies that reduce the number of low-skilled immigrants who work predominantly in low-skilled service occupations may have an unintended consequence of lowering women’s participation in the labor market. This article examines the labor supply impact of the Legal Arizona Workers Act (LAWA), which led to a large decline in the low-skilled immigrant workforce of the state. The analysis shows no evidence that LAWA statistically significantly affected US-born women’s labor supply in Arizona. This finding is partly explained by an increase in native workers in household service occupations due to LAWA, which offset the decline in immigrants in these occupations and caused the cost of household services to be relatively uninfluenced by the passage of LAWA.","PeriodicalId":45367,"journal":{"name":"IZA Journal of Labor Policy","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43370973","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-03-01DOI: 10.2478/IZAJOLP-2020-0010
C. Chartouni, Robert Holzmann, G. Páez
Abstract In this paper, we analyze the Individuals’ level of engagement on the labor market and the engagement heterogeneity across individuals in matters of labor market outcomes and the effectiveness of policy interventions. Emerging economies with highly segmented and distorted labor markets typically exhibit strong heterogeneity in labor market engagement. This paper develops an innovative index that measures individuals’ labor market engagement across three dimensions (preferences, intensity, and barriers) and across three labor market categories (employed, unemployed, and out-of-labor force) based on a recent special labor market survey in the Kingdom of Saudi Arabia (KSA). Clustering individuals with similar engagement levels permit more effective targeting of labor market interventions. Findings confirm the strong heterogeneity of labor market engagement in the KSA and the index’s usefulness in the construction of differentiated policies across these clusters.
{"title":"Not everyone is engaged: an innovative approach to measure engagement levels on the labor market","authors":"C. Chartouni, Robert Holzmann, G. Páez","doi":"10.2478/IZAJOLP-2020-0010","DOIUrl":"https://doi.org/10.2478/IZAJOLP-2020-0010","url":null,"abstract":"Abstract In this paper, we analyze the Individuals’ level of engagement on the labor market and the engagement heterogeneity across individuals in matters of labor market outcomes and the effectiveness of policy interventions. Emerging economies with highly segmented and distorted labor markets typically exhibit strong heterogeneity in labor market engagement. This paper develops an innovative index that measures individuals’ labor market engagement across three dimensions (preferences, intensity, and barriers) and across three labor market categories (employed, unemployed, and out-of-labor force) based on a recent special labor market survey in the Kingdom of Saudi Arabia (KSA). Clustering individuals with similar engagement levels permit more effective targeting of labor market interventions. Findings confirm the strong heterogeneity of labor market engagement in the KSA and the index’s usefulness in the construction of differentiated policies across these clusters.","PeriodicalId":45367,"journal":{"name":"IZA Journal of Labor Policy","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43765050","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-03-01DOI: 10.2478/izajolp-2020-0007
Peter Shirley
Abstract The Earned Income Tax Credit (EITC) is one of the largest anti-poverty programs in the United States, providing over $67 billion to more than 27 million families for the tax year 2016, an average of $2,455. By subsidizing the earnings of low-income workers, the EITC reduces poverty both directly through the credit itself and indirectly through labor supply incentives. The two primary determinants of the amount a tax unit receives are earned income and number of children. Many studies define eligibility based on the presence of children in a household and separate analyses by marital status, a reflection of the fundamentally different incentives the EITC poses for single- and dual-earner households. However, as the EITC theoretically encourages fertility and generally discourages marriage, endogenous responses along these two dimensions could bias estimates which rely on them for identification and sample selection. In this paper, I revisit the classic question of the EITC’s labor market effects while exploiting a source of arguably exogenous variation in EITC receipt that does not rely on these potentially endogenous characteristics: birth timing around the end of the calendar year. Using the Survey of Income and Program Participation, my results show positive earnings and employment effects for unmarried women in the 12 months following their first/only child’s birth, including for those with a high school degree or less (low-ed). Overall, the results are usually small and insignificant for married women, with the exception of negative (and sometimes significant) effects on earnings for low-ed married women. Using a difference-in-discontinuities approach, I separate the income effect of the credit itself from the information effect, which, I argue, occurs when women receive the EITC for the first time. I show that, while the income effect is negative across all groups of women, the information effects are positive for unmarried women and negative for married women, again consistent with theory and the body of evidence on the EITC.
{"title":"First-time mothers and the labor market effects of the earned income tax credit","authors":"Peter Shirley","doi":"10.2478/izajolp-2020-0007","DOIUrl":"https://doi.org/10.2478/izajolp-2020-0007","url":null,"abstract":"Abstract The Earned Income Tax Credit (EITC) is one of the largest anti-poverty programs in the United States, providing over $67 billion to more than 27 million families for the tax year 2016, an average of $2,455. By subsidizing the earnings of low-income workers, the EITC reduces poverty both directly through the credit itself and indirectly through labor supply incentives. The two primary determinants of the amount a tax unit receives are earned income and number of children. Many studies define eligibility based on the presence of children in a household and separate analyses by marital status, a reflection of the fundamentally different incentives the EITC poses for single- and dual-earner households. However, as the EITC theoretically encourages fertility and generally discourages marriage, endogenous responses along these two dimensions could bias estimates which rely on them for identification and sample selection. In this paper, I revisit the classic question of the EITC’s labor market effects while exploiting a source of arguably exogenous variation in EITC receipt that does not rely on these potentially endogenous characteristics: birth timing around the end of the calendar year. Using the Survey of Income and Program Participation, my results show positive earnings and employment effects for unmarried women in the 12 months following their first/only child’s birth, including for those with a high school degree or less (low-ed). Overall, the results are usually small and insignificant for married women, with the exception of negative (and sometimes significant) effects on earnings for low-ed married women. Using a difference-in-discontinuities approach, I separate the income effect of the credit itself from the information effect, which, I argue, occurs when women receive the EITC for the first time. I show that, while the income effect is negative across all groups of women, the information effects are positive for unmarried women and negative for married women, again consistent with theory and the body of evidence on the EITC.","PeriodicalId":45367,"journal":{"name":"IZA Journal of Labor Policy","volume":null,"pages":null},"PeriodicalIF":0.5,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43813047","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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