Estimating labour supply responses and welfare participation: Using a natural experiment to validate a structural labour supply model

2015 ◽  
Vol 48 (5) ◽  
pp. 1831-1854 ◽  
Author(s):  
Jorgen Hansen ◽  
Xingfei Liu
2015 ◽  
Vol 10 (2) ◽  
Author(s):  
Andrés Mideros ◽  
Cathal O’Donoghue

AbstractWe 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


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