The Impact of Unconditional Subsidy Transfers on Household's Time Allocation: Evaluation of an Implemented Policy

This research aims to assess the effect of unconditional cash subsidy transfer (which is instead of energy subsidies) on the labor supply of Head of household in Iran. I use data from the household's Income and expenditures survey of Statistical center of Iran for 2010-1012. I conduct the policy evaluation by a Difference-in-Difference strategy. In this regard, according to the household situations in receiving or not receiving the cash transfer, I divide the households into treatment and control groups. With using Dif in Dif estimators (ordinary least square, instrumental variable and Heckman's sample selection) I examine the effects of the policy on allocated hours on first and second jobs. The findings show that there is not the remarkable significant effect from cash transfer to the time allocation decision among Iranian household heads.