Template-type: ReDIF-Paper 1.0
Author-Name: Holford, Angus
Title: The labour supply effect of Education Maintenance Allowance and its implications for parental altruism
Abstract: Education Maintenance Allowance (EMA) was a UK government cash transfer paid directly to children aged 16-18 in post-compulsory full-time education. Using data from the Longitudinal Study of Young People in England, we find an EMA payment of £30 per week reduces teenagers’ labour supply by 3 hours per week. We show this is consistent with parents withdrawing cash and in-kind transfers from their child to a value between £7.80 and £20.10 per week. We therefore argue that making this cash transfer directly to the child produces higher child welfare than if the equivalent transfer were made to parents.

Creation-Date: 20141017
Number: 2014-37
Publication-Status: published
File-URL: https://www.iser.essex.ac.uk/wp-content/uploads/files/working-papers/iser/2014-37.pdf
File-Format: Application/pdf
Handle: RePEc:ese:iserwp:2014-37