Mothers' Labor Supply and Conditional Cash Transfers: Evidence From Chile

Gonzalo Dona

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.

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 Presented in Session 227. International Evidence on Poverty and Social Policy