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The dog that did not bark: The EITC for single mothers in the Netherlands

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  • Leon Bettendorf

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  • Kees Folmer

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  • Egbert Jongen

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    Abstract

    We study the extension of an EITC for single mothers in the Netherlands to mothers with a youngest child of 12 to 15 years old. This reform has increased the net income for the treatment group by 5%. Using both DD and RD, we show that this reform has had a negligible effect on labour participation with tight confidence intervals around zero. Our results are at odds with a number of related studies. This is likely to be due to their use of single women without children as the control group, which in our case is an invalid control group.

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    Bibliographic Info

    Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Paper with number 229.

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    Date of creation: Jan 2013
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    Handle: RePEc:cpb:discus:229

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    1. Blundell, Richard & Costa Dias, Monica, 2008. "Alternative Approaches to Evaluation in Empirical Microeconomics," IZA Discussion Papers 3800, Institute for the Study of Labor (IZA).
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    8. Eissa, Nada & Liebman, Jeffrey B, 1996. "Labor Supply Response to the Earned Income Tax Credit," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 111(2), pages 605-37, May.
    9. Brewer, Mike & Duncan, Alan & Shephard, Andrew & Suarez, Maria Jose, 2006. "Did working families' tax credit work? The impact of in-work support on labour supply in Great Britain," Labour Economics, Elsevier, Elsevier, vol. 13(6), pages 699-720, December.
    10. Bargain, Olivier & Orsini, Kristian & Peichl, Andreas, 2011. "Labor Supply Elasticities in Europe and the US," EUROMOD Working Papers EM1/11, EUROMOD at the Institute for Social and Economic Research.
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    12. Bruce D. Meyer & Dan T. Rosenbaum, 2001. "Welfare, The Earned Income Tax Credit, And The Labor Supply Of Single Mothers," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(3), pages 1063-1114, August.
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