DISCUSSION PAPER SERIES The Labor Supply Effect of

The views expressed here do not necessarily reflect those of the Geary Institute. All errors and omissions remain those of the author 1Abstract We estimate a model of labor supply and participation in multiple programs for UK lone mothers which exploits a reform of in-work transfers. Cash entitlements increased but eligibility to in-kind child nutrition programs was lost. We find that in-work cash and in-work in-kind transfers both have large positive labor supply effects. There is, however, a utility loss from program participation which is estimated to be larger for cash than for child nutrition. This implies that the partial cash out of the in-kind benefits reduced labor supply