Announcements

ECONOMICS SEMINAR -Remzi Kaygusuz

Author: CASE
Time: 14:30
Location: CASE 127

KOC UNIVERSITY
FACULTY OF ADMINISTRATIVE SCIENCES AND ECONOMICS
ECONOMICS SEMINAR

Wednesday, 19 December 2018

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Speaker  : Remzi Kaygusuz-Sabancı University

Title        :  Child-Related Transfers, Household Labor Supply and Welfare

Time       : 14:30-16:00
Place      : CASE 127

Date       :  19 December 2018 -Wednesday

Abstract: What are the macroeconomic effects of transfers to households with children in the United States? How do alternative policies fare in welfare terms? We answer these questions in an equilibrium life-cycle model with household labor supply decisions, skill losses of females associated to non participation, and heterogeneity in terms of fertility, childcare expenditures and access to informal care. We contrast transfers that are contingent on market work (childcare subsidies and childcare credits) with those that are not (child credits), and evaluate reallocation of resources across programs as well as expansions of them. We Önd that expansions of transfers of the Örst group have substantial positive effects on female labor supply, that are largest at the bottom of the skill distribution. Expanding childcare credits leads to long-run increases in the participation of married females of 10.6%. An equivalent expansion of the child credits leads to the opposite, a reduction of about 2.4%. The expansion of existing programs generates substantial welfare gains for newborn households, which are largest for lessskilled households. Expanding childcare credits leads to the largest gains in labor supply and welfare and achieves majority support among newborn households.