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The existing literature finds that the AUH had a significant impact on the reduction of poverty and income inequality (Gasparini and Cruces 2010; Agis et al. 2010), discouraged labor market formalization (Garganta and Gasparini 2015), and increased school attendance (Edo et al. 2015).
Even while he discouraged labor unions from associating with Communism, he urged them to work ceaselessly to achieve a fairer distribution of economic resources.
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Other policies that discourage labor force participation of women should also be assessed in I.M.F.
Furthermore given the extensive subsidies to child care, which encourage female labor force participation, the high marginal tax rates do not discourage labor supply as we might at first think.
Heathcote et al. (2014) also find that higher income tax progresssivity discourages labor supply.
It seems in part related to recessions stimulating distress labor amongst mothers, in contrast to the case in richer countries, where they discourage labor market participation.
The income effect associated to the cash transfer may discourage labor participation of beneficiary family members, but especially of mothers for at least two reasons.
If the AUH tends to increase mother's time spending on childcare (and hence discourage labor participation), then this potential change between eligible and ineligible groups may be negligible for large families.
Although several studies have found no significant labor consequences in the short term (Amarante et al. 2011, 2011; Alzúa et al. 2013; Galasso 2006; Skoufias and Di Maro 2008; Skoufias et al. 2008; Edmonds and Schady 2012; Banerjee et al. 2015), some papers provide evidence that CCTs may discourage labor supply in certain groups.
If remittances discourage labor force participation of non-migrants through its income effects, we should observe that individuals in the treatment regions are more likely to participate vis-à-vis individuals in control regions—whenever Colombian immigrant hosting countries are undergoing bad times, when immigrants are less likely to send remittances to their relatives in Colombia.
At the same time, US policy actively discourages labor demand.
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CEO of Professional Science Editing for Scientists @ prosciediting.com