Child related lump sum transfers and family behavior
نویسندگان
چکیده
This paper examines the impact of a change in the German child benefit system in 1996, which led to a large increase in lump sum transfers to families with children. We analyze the impact on the labor force participation of family members as well as on household consumption directed to children. Comparing behavioral changes of adults with children with behavioral changes of adults without children, we find that mothers slightly reduced their labor market participation switching from full to part time employment, while participation rates of fathers increased. At the same time we observe a significant increase in maternal time for child care, especially among women with small children. JEL classification: H31, I38, J22
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