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The Consequences of ?In-Work? Benefit Reform in Britain : New Evidence from Panel Data

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dc.creator Francesconi, Marco
dc.creator van der Klaauw, Wilbert
dc.date 2004
dc.date.accessioned 2013-10-16T07:10:51Z
dc.date.available 2013-10-16T07:10:51Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20512
dc.identifier ppn:39590434X
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20512
dc.description In October 1999, the British government enacted the Working Families? Tax Credit, a generous tax credit aimed at encouraging work among low-income families with children. This paper uses longitudinal data collected between 1991 and 2001 to evaluate the effect of this reform on single mothers. We identify this impact by comparing changes in behavior of lone mothers to changes for single women without children. Our results show that the financial incentives of the reform had powerful effects on a wide range of lone mothers? decisions. The reform led to a substantial increase in employment rates of about 7 percentage points, which was driven by both higher rates at which lone mothers remained in the labor force and higher rates at which they entered it. Women?s responses were highly heterogeneous, with larger effects for mothers with one pre-school aged child, and virtually no effect for mothers with multiple older children. The reform also led to significant reductions in single mothers? subsequent fertility and in the rate at which they married. Our findings suggest that the generous childcare tax credit component of the reform played a key role in explaining the estimated employment responses. Finally, we find relatively large behavioral effects in anticipation of the actual reform, which emphasizes the importance of allowing for such effects in future evaluation research.
dc.language eng
dc.relation IZA Discussion paper series 1248
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject H31
dc.subject J22
dc.subject C23
dc.subject J13
dc.subject J12
dc.subject I38
dc.subject ddc:330
dc.subject difference-in-difference and panel-data estimators
dc.subject welfare-to-work program evaluation
dc.subject lone mothers
dc.subject anticipation effects
dc.subject Familienleistungsausgleich
dc.subject Familienbesteuerung
dc.subject Workfare
dc.subject Alleinerziehende
dc.subject Frauenerwerbstätigkeit
dc.subject Arbeitsangebot
dc.subject Grossbritannien
dc.title The Consequences of ?In-Work? Benefit Reform in Britain : New Evidence from Panel Data
dc.type doc-type:workingPaper

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