On January 1st, 2007, the German government implemented a fundamental parental allowance reform which replaced the former means-tested flat rate benefit. The new system, the Elterngeld (parental money), incentivized working women to become mothers by providing them with 67% of their wage during the first year following the birth of their children. This research employs longitudinal data from the German Socioeconomic Panel (SOEP) in order to identify the impact of the reform on the extensive and intensive margins of labour supply. On the intensive margin, we find no medium-run causal effect of parental money on the labor supply of mothers with a young child on aggregate. However, when we estimate the models for the intensive and extensive margins, we find a significant and positive effect on the hours worked and probability of cohabiting women to work full-time. In contrast, no significant effect could be detected for married women. These results confirm heterogeneous effects of the parental allowance reform on married and cohabiting mothers that previous work has suggested but not been able to prove.
This paper studies the relationship between financial sector size and macroeconomic volatility. First, we develop a theoretical model based on Bacchetta and Caminal (2000) where we make the moral hazard problem a function of financial sector size and quality. Second, using a panel dataset consisting of 103 countries from 1981 to 2010, we look for an empirical relationship between the size of the financial sector and volatility of economic growth. We differentiate countries with respect to the quality of their financial sector. The results suggest a hump-shaped relationship for countries with high-quality financial sectors, suggesting that sufficiently large financial sectors offer diversification opportunities that outweigh the stability risk inherently attached to financial development. We estimate that growth volatility reaches a maximum when private credit over GDP is between 125 percent and 135 percent. In contrast, in countries with low-quality financial sectors no significant relationship is found.
This research studies the impact of the Popular Health Insurance, a Mexican health insurance program, on the health outcomes and health related expenditures of the Mexican families. Using Generalized Least Squares on panel data and Probit models on a cross sectional national health survey, I was able to find that the Popular Health Insurance has been able to: a) increase the use of medical services; b) decrease the morbidity of preventable diseases; c) reduce the diabetes mortality rate (currently the leading cause of death in Mexico) and; d) diminish the probability the poorest families have of incurring in catastrophic and impoverishing health expenses.