Cash transfers in low and middle income countries do not reduce labor supply.

"Examining labor supply specifically, we do not find evidence that recipient households worked less; if anything, total hours worked by recipient households in agriculture, self-employment and employment increased slightly (Table 2, Panel A, columns 1 and 2). This is consistent with the studies reviewed by Banerjee et al. (2017), which generally have found that cash transfers in low and middle income countries do not reduce labor supply."

empirical


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