Conference Agenda

Overview and details of the sessions of this online conference.

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Session Overview
L04: Labor Supply
Friday, 20/Aug/2021:
2:15pm - 3:45pm

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2:15pm - 2:37pm

Labor Market And Health Effects Of An Activation Program For The Long-term Inactive

Mareen Bastiaans, Anne Gielen, Robert Dur

Erasmus University Rotterdam, Netherlands, The

Some active labor market programs have been shown to improve labor market outcomes, however they mostly target individuals relatively close to the labor market. Many long-term benefit recipients suffer from mental health issues, indicated by the high rate of mental health care use in this group. Activation strategies for this group may not improve labor market outcomes, but may benefit them by replacing some of the benefits that a job offers such as providing a routine or social network. We evaluate an activation program for individuals with a large distance to the labor market, at least five years out of employment and on general assistance. The staggered implementation of the program allows for a difference-in-difference design. We evaluate both labor market and mental health effects.

Bastiaans-Labor Market And Health Effects Of An Activation Program-327.pdf

2:37pm - 3:00pm

Inducing Labor: The Impact of Health Insurance on Post-Natal Labor Force Participation

Shanthi Ramnath1, Elena Patel2, Ithai Lurie3

1Federal Reserve Bank of Chicago; 2University of Utah; Eccles School of Business; 3US Department of Treasury; Office of Tax Analysis

In this paper we analyze the role of access to health insurance plays in the widely documented, sharp fall in mother’s labor supply following childbirth. Our analysis exploits variation created by the Affordable Care Act (ACA), which substantially expanded access to health insurance within the U.S., and richly detailed administrative tax data. We find that mother’s relative post-childbirth employment increases by 12% for births that occur after the insurance expansion. This labor supply response is pervasive across mother’s pre-birth characteristics, and across the varied impact of the ACA expansion. Our analysis suggests that this response is likely driven by a combination of improved access to maternal health care, increased participation by mothers who do not work before birth, reduced exits among mothers who do work before birth, and a compositional changes in who gives birth following the ACA health insurance expansion.

Ramnath-Inducing Labor-352.pdf

3:00pm - 3:22pm

Means-Tested Child Care Subsidies and Parental Labor Supply

Trine Engh Vattø1, Kjersti Misje Østbakken2

1Statistics Norway; 2Institute for Social Research

An important rationale for providing universal child care subsidies is to encourage maternal labor market participation. Often governments choose to prioritize means-tested child care subsidies, targeted at low-income families. In the present study we discuss the ambivalent effects of means-tested child care subsidies on parents’ labor supply both analytically and by microsimulations of a structural labor supply model. We then utilize the introduction of a national scheme of means-tested child care subsidies in Norway, which offers a natural experiment to isolate the price effect (positive effect of subsidized care) and the strategic effects (negative effect of means-testing) on parents’ labor supply. Surprisingly, we find no significant effect on neither of the two mechanisms. Effects close to zero are confirmed by the structural labor supply model, which helps us shed some light on the likely reasons for the small responses to means-tested child care subsidies in the Norwegian context.

Vattø-Means-Tested Child Care Subsidies and Parental Labor Supply-401.pdf

3:22pm - 3:45pm

Did the $660 Billion Paycheck Protection Program and $220 Billion Economic Injury Disaster Loan Program Get Disbursed to Minority Communities in the Early Stages of COVID-19?

Robert Fairlie1, Frank Fossen2

1University of California, Santa Cruz, USA; 2University of Nevada, Reno, USA

Social distancing restrictions and demand shifts from COVID-19 shut down many small businesses with especially negative impacts on minority owners. Was the unprecedented US federal government response to support small businesses, which had a stated goal of helping disadvantaged groups – the $659 billion Paycheck Protection Program and the $220 billion COVID-19 Economic Injury Disaster Loans – disbursed evenly to minority communities? From our analysis of the universe of loans from these programs, we generally find a slightly positive relationship between PPP loan receipt per business and the minority share of the population or businesses, although funds flowed to minority communities later than to communities with lower minority shares. PPP loan amounts, however, are negatively related to the minority share of the population. The EIDL program, in contrast, was distributed positively to minority communities.

Fairlie-Did the $660 Billion Paycheck Protection Program and $220 Billion Economic Injury Disaster Loan.pdf

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