Expenditure Patterns Post-Welfare Reform in the UK: Are Low-Income Families Starting to Catch Up?
AbstractIn this paper we provide evidence on how the UK government’s welfare reforms since 1998 have affected the material well-being of children in low-income families. We examine changes in expenditure patterns and ownership of durable goods for low- and higher-income families between the pre-reform period (1995-1998) and the post-reform period (2000-2003), using data from the Family Expenditure Survey. The methodological approach is a difference-in-difference-in-difference analysis that exploits the fact that age variation in the reforms favoured low-income families over higher-income ones and families with children age under 11 over those with older children. We find that low-income families with children are catching up to more affluent families, in their expenditures and their possession of durable goods. Moreover, expenditures on child-related items are increasing faster than expenditures on other items.
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Bibliographic InfoPaper provided by Department of Economics, University of Bristol, UK in its series The Centre for Market and Public Organisation with number 05/119.
Length: 50 pages
Date of creation: May 2005
Date of revision:
child poverty; family expenditures; welfare reform; difference-in-difference;
Other versions of this item:
- Paul Gregg & Jane Waldfogel & Elizabeth Washbrook, 2005. "Expenditure Patterns Post-Welfare Reform in the UK: Are low-income families starting to catch up?," CASE Papers 099, Centre for Analysis of Social Exclusion, LSE.
- I3 - Health, Education, and Welfare - - Welfare and Poverty
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
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