Effect of the 2020 parental benefit increase in the Czech Republic on labor supply
|Author:||Mgr. Matěj Šarboch|
|Year:||2022 - summer|
|Leaders:|| Filip Pertold
|Work type:|| Economic Theory
|Awards and prizes:|
|Abstract:||Family policies can have significant impacts on individuals' behaviour in the labor market. Parental benefits policies are a prominent example. In 2020, the Czech government
increased the amount of benefits paid out to parents from 220,000 CZK to 300,000 CZK.
This thesis studies the effects of this reform on parents' labor supply using a differencein-differences identification and the Labor force survey collected by the Czech Statistical
Office. The results show that mothers with their youngest child being 2 or 3 years old
significantly decreased their usual weekly hours worked as well as their labor force participation rate as a result of this reform. Mothers with a university degree and mothers
with only one child are the most affected groups. This thesis is the first analysis of this
reform and it contributes to the existing literature on effects of family policy changes and
also serves as the public policy evaluation.