We study the effects of a large cash transfer to new mothers in the region of Madrid on women’s spending patterns and labour supply. We follow a regression discontinuity design where the running variable is the date of birth, given that mothers were only eligible for the subsidy for births starting in 1 January of 2022.
- Speaker
- Date
- Monday 10 Nov 2025, 11:30 - 12:30
- Type
- Seminar
- Room
- 2.14
- Building
- Langeveld Building
(with Daniel Fernández Kranz, IE University; Alberto Graziano, Caixabank Research; and Josep Mestres, Caixabank Research)
We take advantage of rich and very granular transaction data from a large bank to trace out take-up as well as expenditure patterns and labour earnings. We find that women who were eligible for the large subsidy (500€ per month for more than two years) increased their total spending during the eligibility period, while their labour earnings did not decline.
We also show marked spikes in expenditure in the dates immediately following benefit receipt. We conclude that the benefit increased consumption for women with liquidity constraints, without reducing their labour supply in the two years following childbirth.
Registration for bilateral, lunch or dinner
Lunch will be provided. If you would like to meet the guest speaker for a bilateral, join for lunch or dinner, then please register by filling in the registration form.
