The effect of means-tested social transfers on labour supply: heads versus spouses - An empirical analysis of work disincentives in the Kyrgyz Republic
Franziska Gassmann & Lorena Zardo Trindade
#2016-030
This paper empirically estimates potential work disincentives of a
means-tested social transfer in the Kyrgyz Republic for adults with
different household positions. Using data from the Kyrgyz Integrated
Household Survey 2012, the analysis compares labour market outcomes for
household heads and spouses. Binary response models and
quasi-experimental methods are applied to assess the effect of the
Monthly Benefit for Poor Families with Children (MBPF) on labour supply.
The analysis indicates that overall beneficiaries have on average higher
labour market participation rates when compared to non-beneficiaries,
but they are more exposed to seasonal effects. Results differ when
analysing different household members separately. Household heads in
beneficiary households are less likely to be economically active than
similar non-beneficiaries. Yet, spouses are more likely to be
economically active. However, the effects differ depending on whether
the household is located in the South or the North of the country.
Key words: social transfers, work disincentives, Kyrgyz Republic
JEL Classification: I38, J22