Estimados Académicos y Académicas FEN,

Les extendemos la invitación al seminario que organiza el Departamento de Economía, en el que se presentará el trabajo titulado "Earned Income Subsidies, Female Labor Supply, and The Role of Informational Frictions".

Expone: Tomás Rau, Profesor Titular, Director Instituto de Economía, PUC.

Abstract: We estimate the causal effect of earned income subsidies on women’s labor supply and explore the role of informational frictions in explaining such effects. To this end, we exploit a unique setting in Chile, where an earnings subsidy program—similar to the Earned Income Tax Credit—provides benefits only for women below a target defined by a vulnerability score. Using administrative data on nearly two million potential beneficiaries and a Regression Discontinuity Design, we find that having access to the subsidy does not cause an effect on labor supply along the extensive margin. A structural model of labor supply choices suggests that lack of information about the program significantly dampens the individuals’ responses to the policy. In contrast, increasing the size of the subsidy—even in a perfect-information scenario—does not cause major changes on barely-eligible women’s work choices.

El formato será presencial y el seminario se desarrollará en la Sala P-303.

Saludos cordiales,

Dirección de Investigación