Tax Credits, Income Support and Partnership Decisions
AbstractThis paper considers the potential impact of welfare benefits on the partnership status of women in the UK. Using recent policy reforms to identify the response rate I find that a £100/week welfare benefit “partnership penalty” reduces the probability of a woman having a partner by seven percentage points. I also use the model to explore the potential effects of the recent Tax Credit reforms on partnership rates; I find that while the 1999 WFTC reform improved partnership incentives this effect was effectively undone by the 2003 WTC/CTC reform.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2147.
Date of creation: 2007
Date of revision:
welfare benefits; tax credits; family structure;
Other versions of this item:
- Dan Anderberg, 2008. "Tax credits, income support, and partnership decisions," International Tax and Public Finance, Springer, vol. 15(4), pages 499-526, August.
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
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