This paper uses a difference-in-difference strategy to test how a Chilean conditional cash transfer program (CCT) affects mothers' labor supply. I find that the program leads to a significant decline in labor supply for single mothers. This reduction is particularly sharp for young single mothers ages 18 to 24, who experience a 4.1% fall in labor force participation and an 6.5% fall in working hours. These results highlight an unintended and policy-relevant behavioral response to CCTs. It is also the first time these effects are studied for a population with high baselines on secondary schooling and health care utilization.
Presented in Session 227. International Evidence on Poverty and Social Policy