The effect of unconditional cash transfers on adult labour supply: A unitary discrete choice model for the case of Ecuador

A. Mideros, C. O'Donoghue

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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, do not produce labour
disincentives in the case of household heads, but may be paying for
housework and childcare provided by partners and single adults. However,
labour market and care work gender inequality must be addressed by
complementary policies.
Original languageEnglish
Place of PublicationMaastricht
Publication statusPublished - 1 Jan 2014

Publication series

SeriesUNU-MERIT Working Papers

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