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 Centre for Analysis of Social Exclusion, LSE in its series CASE Papers with number 099.
Date of creation: May 2005
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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?," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 6259, London School of Economics and Political Science, LSE Library.
- Paul Gregg & Jane Waldfogel & Elizabeth Washbrook, 2005. "Expenditure Patterns Post-Welfare Reform in the UK: Are Low-Income Families Starting to Catch Up?," The Centre for Market and Public Organisation 05/119, Department of Economics, University of Bristol, UK.
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-26 (All new papers)
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