The Impacts of a Child Allowance Program on the Behavior of Adults in the Labor Market. The Case of Argentina

Roxana Maurizio, Universidad Nacional de General Sarmiento (UNGS) and Consejo Nacional de Investigaciones Científicas y Técnicas (CONICET)
Gustavo Vázquez, Universidad Nacional de General Sarmiento (UNGS)

In 2009 Argentina implemented a cash transfer program to households with children –the Universal Child Allowance program (UCA)-, which extended the coverage of the already existing contributory family allowance program to families in the informal economy, unemployed and domestic workers. This paper evaluates the effects of the UCA on adult labor participation and income generation, by using the Difference-in-Difference Estimator. The results suggest that no important disincentive to work has been generated by the program given that it did not discourage adults from working or lead to a reduction in the number of hours worked. These findings are highly relevant in the Latin American context where this kind of cash transfers became an important component of the social protection systems.