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ISER Working Paper Series 2014-37

The labour supply effect of Education Maintenance Allowance and its implications for parental altruism

Authors

Publication date

17 Oct 2014

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.

Subjects

Young People, Education, Labour Market, Welfare Benefits, and Social Policy

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Related publications

  1. The labour supply effect of Education Maintenance Allowance and its implications for parental altruism

    Angus Holford

    1. Young People
    2. Education
    3. Labour Market
    4. Welfare Benefits
    5. Social Policy

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