The Effect of Unconditional Cash Transfers on Adult Labour Supply: A Unitary Discrete Choice Model for the Case of Ecuador

@article{Mideros2015TheEO,
  title={The Effect of Unconditional Cash Transfers on Adult Labour Supply: A Unitary Discrete Choice Model for the Case of Ecuador},
  author={Andr{\'e}s Mideros and Cathal O'Donoghue},
  journal={Basic Income Studies},
  year={2015},
  volume={10},
  pages={225 - 255}
}
We examine the effect of unconditional cash transfers by a unitary discrete labour supply model. We argue that there is no negative income effect of social transfers in the case of poor adults because leisure could not be assumed to be a normal good under such conditions. Using data from the national employment survey of Ecuador (ENEMDUR) we estimate the effect of the Bono de Desarrollo Humano (BDH). Results show that cash transfers, unconditional in labour, does not produce labour… CONTINUE READING

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