Effect of Cash-Benefit Reform on Immigrants’ Labour Supply and Earnings

This paper evaluates the impact of a recent Norwegian family-policy reform on the labour supply of native and three groups of immigrant women in Norway. The reform provides cash benefits to families with one- to three-year-old children, who do not utilize state-subsidized day-care centres. We find that natives and non-Western immigrants quit the labour market. However, the effect is trivial for natives whereas it is more significant for immigrants. Given participation, earnings of natives and all groups of female immigrants fell after the cash-benefit reform. Specifically, earnings of non-Western immigrants fell by more than those of natives and OECD immigrants.Cash-benefit Reform; Integration policy; Immigrants

Migration,sex bias, and child growth in rural Pakistan

Temporary economic migration is undertaken largely in response to resource constraints. This is evident in the volume of remittances sent back by migrants to their families of origin. In agricultural settings, where those left behind are likely to face considerable exposure to uninsured income risk, such resource flows should translate into better risk bearing capacity. In this paper the author takes up this question by asking whether economic migration allows households to avoid costly risk coping strategies. She focuses on early child growth since there is considerable epidemiological evidence that very young children are particularly vulnerable to shocks that lead to growth faltering, with substantial long-term health consequences. The data come from rural Pakistan, where, as in the rest of Asia, son preference is substantial and there are large gender gaps in most developmental outcomes. As such, the interest is in examining also whether migration-induced resource flows allow households to extend better nutrition and health care protection to girls. Recent work on the intra-household allocation of resources and risk has also shown that gender differences in the relative burden of risk may be important and that the allocation of resources to daughters is often one margin along which poor households adjust to uninsurable transitory income shocks. After accounting for selection into migration, the results indicate that migration has a substantially larger positive impact on growth outcomes for young girls. And the growth advantage is sustained among older girls, suggesting potential intergenerational benefits of averting nutritional and other health shocks for girls in early childhood. These results are further validated by restricting the sample to migrant households and comparing the growth outcomes of siblings before and after migration.Health Monitoring&Evaluation,Anthropology,Youth and Governance,Gender and Development,Adolescent Health

The impact of tax credits on labour supply

One of the principle aims of the Working Families' Tax Credit in the UK was to increase the participation of single mothers. The literature to date concludes there was approximately a five-percentage-point increase in employment of single mothers. The differences-in-differences methodology that is typically used compares single mother with single women without children. However, the characteristics of these groups are very different, and change over time in relative covariates are likely to violate the identifying assumption. We find that when we control for differential trends between women with and without children, the employment effect of the policy falls significantly. Moreover, the effect is borne solely by those working full-time (30 hours or more), while having no effect on inducing people into the labor market from inactivity. Looking closely at important covariates over time, we can see sizeable changes in the relative returns to employment between the treatment and control groups.Tax Credits, Differences-in-differences, Single Mothers.

The Impact of a Cash Benefit Reform on Parents’ Labour Force Participation.

This paper evaluates the impact of a recent Norwegian family policy reform. The reform provides benefits of up to NOK 3000 per month to all families with 1-3 year old children, who do not utilise state subsidised day care centres. We investigate the reform’s effect on parents’ labour force participation. Our findings suggest that, on average, women’s labour force participation decreases and specialisation of work between couples increases after the reform. When we evaluate the reform’s impact in association with women’s schooling we find that the decrease in the labour force participation of mothers who have university level schooling is larger as compared with mothers who have less than university schooling.Public policy; Cash benefits; Specialisation

Child-Care in Norway: Use of Parental Leave by Fathers

An important feature of parental leave in Norway is that it allows significant sharing of leave between parents. Parents may take 54 weeks of leave and receive 80 per cent of previous earnings or 44 weeks of leave with 100 per cent of earnings, up to a ceiling amount. Nine weeks of total leave are, however, reserved for the mother and six weeks for the father and, as a general rule, these weeks cannot be transferred to the other parent. The remaining parental leave can be shared between parents. A reserved period of leave for fathers, known as the paternity quota, was introduced in 1993. Initially, this quota was four weeks. The paternity quota has been a great success and is utilized by 80–85 per cent of eligible fathers; however, very few fathers share gender-neutral parental leave. In this paper, we use register data to investigate factors that may influence fathers’ share of parental leave for children born in 2001. We find that married fathers use more leave than cohabitants. In addition, fathers’ education, mothers’ income and number of preschool children positively affect fathers’ use of the paternity quota and gender-neutral leave. Fathers’ workplace does not affect the use of the paternity quota but has a significant effect on the use of gender-neutral leave.Economics of Gender; Non-labor Discrimination; Public Policy.

Community-based (and driven) development : A critical review

Community-based (and driven) development (CBD/CDD) projects have become an important form of development assistance, with the World Bank's portfolio alone approximating 7 billion dollars. The authors review the conceptual foundations of CBD/CDD initiatives. Given the importance of the topic, there are, unfortunately, a dearth of well-designed evaluations of such projects. But there is enough quantitative and qualitative evidence from studies that have either been published in peer-reviewed publications or have been conducted by independent researchers to glean some instructive lessons. The authors find that projects that rely on community participation have not been particularly effective at targeting the poor. There is some evidence that CBD/CDD projects create effective community infrastructure, but not a single study establishes a causal relationship between any outcome and participatory elements of a CBD project. Most CBD projects are dominated by elites and, in general, the targeting of poor communities as well as project quality tend to be markedly worse in more unequal communities. However, a number of studies find a U-shaped relationship between inequality and project outcomes. The authors also find that a distinction between potentially"benevolent"forms of elite domination and more pernicious types of"capture"is likely to be important for understanding project dynamics and outcomes. Several qualitative studies indicate that the sustainability of CBD initiatives depends crucially on an enabling institutional environment, which requires upward commitment. Equally, the literature indicates that community leaders need to be downwardly accountable to avoid a variant of"supply-driven demand-driven development."Qualitative evidence also suggests that external agents strongly influence project success. However, facilitators are often poorly trained and inexperienced, particularly when programsare rapidly scaled up. Overall, a naive application of complex contextual concepts like"participation,""social capital,"and"empowerment"is endemic among project implementers and contributes to poor design and implementation. In sum, the evidence suggests that CBD/CDD is best done in a context-specific manner, with a long time-horizon, and with careful and well-designed monitoring and evaluation systems.Community Development and Empowerment,Decentralization,Poverty Monitoring&Analysis,Health Economics&Finance,Development Economics&Aid Effectiveness,Poverty Monitoring&Analysis,Health Economics&Finance,Development Economics&Aid Effectiveness,Community Development and Empowerment,Poverty Assessment

The Provision of Relative Performance Feedback Information: An Experimental Analysis of Performance and Happiness

This paper studies the effect of providing relative performance feedback information on individuals' performance and affective response, under both piece-rate and flat-rate incentives. In a laboratory setup, agents perform a real effort task and when receiving feedback, they are asked to rate their happiness, arousal and feeling of dominance. Control subjects learn only their absolute performance, while the treated subjects additionally learn the average performance in the session. Under piece-rate, performance is 17 percent higher when relative performance feedback is provided. Furthermore, although feedback increases the performance independent of the content (i.e., performing above or below the average), the content is determinant for the affective response. When subjects are treated, the inequality in the happiness and the feeling of dominance between those subjects performing above and below the average increases by 8 and 6 percentage points, respectively. Under flat-rate, we do not find any effect on either of the outcome variables.Relative performance, feedback, piece-rate, flat-rate, happiness