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Welfare Reform and the Labour Supply of Lone Parents in Australia: A Natural Experiment Approach

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Denise J. Doiron

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Abstract

Large shifts in the labour supply of lone parents in Australia were observed between 1986 and 1990. Changes in the observed characteristics of lone parents explain only a small portion of these shifts. Propensity score matching and difference-in-differences are used to estimate the effects of the substantial policy shifts implemented in 1987. Control groups are constructed from the sample of married mothers. Results suggest that the policy reforms caused a substantial increase in the employment of lone parents while causing a reduction in the hours of work among the workers. Copyright © 2004 Economic Society of Australia..

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Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 80 (2004)
Issue (Month): 249 (06)
Pages: 157-176
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Handle: RePEc:bla:ecorec:v:80:y:2004:i:249:p:157-176

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  1. Robert Breunig & Deborah Cobb-Clark & Xiaodong Gong, 2005. "Improving the Modeling of Couples' Labour Supply," CEPR Discussion Papers 499, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
    Other versions:
  2. Lixin Cai & Guyonne Kalb & Yi-Ping Tseng & Hong Ha Vu, 2005. "The Effect of Financial Incentives on Labour Supply: Evidence for Sole Parents from Microsimulation and Quasi-Experimental Evaluation," Melbourne Institute Working Paper Series wp2005n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
    Other versions:
  3. John Creedy & Guyonne Kalb, 2005. "Behavioural Microsimulation Modelling for Tax Policy Analysis in Australia: Experience and Prospects," Melbourne Institute Working Paper Series wp2005n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
    Other versions:
  4. John Creedy & Guyonne Kalb, 2005. "Behavioural Microsimulation Modelling With the Melbourne Institute Tax and Transfer Simulator(MITTS): Uses and Extensions," Department of Economics - Working Papers Series 932, The University of Melbourne. [Downloadable!]
  5. Jeff Borland & Yi-Ping Tseng & Roger Wilkins, 2005. "Experimental and Quasi-Experimental Methods of Microeconomic Program and Policy Evaluation," Melbourne Institute Working Paper Series wp2005n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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