Welfare Reform and Lone Parents Employment in the UK
AbstractThe last thirty years saw dramatic increases in the employment rates of married/co-habiting mothers in the UK. Yet the employment rates of lone mothers were lower in the early 1990s than in the late 1970s, at just under 40 percent; and 25 percentage points lower than those of married mothers. In 1997 the incoming Labour government initiated a series of policy reforms aimed at reducing child poverty. A key element of their strategy was a move towards increasing employment rates among families with children. This paper evaluates how this package of policy reform impacted on lone parents employment. We use propensity score matching to construct a benchmark sample and then apply difference-in-difference estimation techniques to assess what would have happened to lone parents employment in the absence of policy reform. Our results show that, of the 11-percentage point rise in the rate of employment of lone parents between 1992 and 2002, 5-percentage points can be attribute to policy reform. This increase in employment occurred in-spite of significant rises in the level of support for non-working lone parents claiming Income Support. This is in sharp contrast to the experience of the USA, where welfare generosity did not increase and time limits and mandatory job search were employed alongside tax credits to get lone parents back to work. In the UK, further substantive policy changes are currently being phased in and so it is probable that there will be further employment gains for lone parents over the next few years. Even so, the pace of response to these reforms does not yet look sufficient to meet the Government's target of getting 70 percent of lone parents into work by 2010.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, University of Bristol, UK in its series The Centre for Market and Public Organisation with number 03/072.
Length: 25 pages
Date of creation: Jun 2003
Date of revision:
welfare reform; lone parents; employment;
Find related papers by JEL classification:
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Duncan, Alan & Giles, Christopher, 1996. "Labour Supply Incentives and Recent Family Credit Reforms," Economic Journal, Royal Economic Society, vol. 106(434), pages 142-55, January.
- Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
- Rebecca M. Blank, 2002.
"Evaluating Welfare Reform in the United States,"
Journal of Economic Literature,
American Economic Association, vol. 40(4), pages 1105-1166, December.
- Richard Blundell & Hilary W. Hoynes, 2004.
"Has 'In-Work' Benefit Reform Helped the Labor Market?,"
in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, pages 411-460
National Bureau of Economic Research, Inc.
- Hilary Hoynes & Richard Blundell, 2001. "Has "In-Work" Benefit Reform Helped the Labour Market?," NBER Working Papers 8546, National Bureau of Economic Research, Inc.
- repec:ner:lselon:http://eprints.lse.ac.uk/28306/ is not listed on IDEAS
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jacqui Barton).
If references are entirely missing, you can add them using this form.