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The Means Testing of Benefits and the Labour Supply of the wives of Unemployed Men: Results from a Fixed Effects Model

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  • Aedin Doris

    () (Economics, National University of Ireland, Maynooth)

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    Abstract

    Women married to unemployed men in Britain have lower participation rates than those married to employed men. Possible reasons include unfavourable local labour market conditions affecting both, their both having poor labour market characteristics, and the means testing of benefits, which creates a disincentive for the wife to work. Using a British panel survey of unemployed men and their families, the means testing effect is estimated; unobservable characteristics are accounted for by using a fixed effects model. The results show no effect of means testing on the labour supply of the wives.

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    Bibliographic Info

    Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n930999.

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    Length: 44 pages
    Date of creation: Sep 1999
    Date of revision:
    Handle: RePEc:may:mayecw:n930999

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    Web page: http://economics.nuim.ie
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    Keywords: Labour Supply; Disincentives; Benefit System;

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    1. Paul Gregg, 1996. "It Takes Two: Employment Polarisation in the OECD," CEP Discussion Papers dp0304, Centre for Economic Performance, LSE.
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