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The Means Testing Of Benefits And The Labour Supply Of The Wives Of Unemployed Men: Results From A Mover-Stayer 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 (1) husbands and wives fac-ing similar unfavourable local labour market conditions, (2) their both having characteristics which make it more likely that they will be unemployed, and (3) the means testing of benefit income, which creates a disincentive for the wife to work. These is-sues are investigated using a British survey of unemployed men and their families. Econometric results from a Mover-Stayer model indicate a limited 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 n940999.

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    Length: 73 pages
    Date of creation: Sep 1999
    Date of revision:
    Handle: RePEc:may:mayecw:n940999

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    Web page: http://economics.nuim.ie
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    Related research

    Keywords: Labour Supply; Disincentives; Benefit System.;

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    References

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    1. Lundberg, S.J. & Pollak, R.A. & Wales, T.J., 1994. "Do Husbands and Wives Pool Their Resources? Evidence from U.K. Child Benefit," Discussion Papers in Economics at the University of Washington 94-6, Department of Economics at the University of Washington.
    2. Layard, Richard & Nickell, Stephen, 1986. "Unemployment in Britain," Economica, London School of Economics and Political Science, vol. 53(210(S)), pages S121-69, Supplemen.
    3. Micklewright, John & Pearson, Mark & Smith, Stephen, 1990. "Unemployment and Early School Leaving," Economic Journal, Royal Economic Society, vol. 100(400), pages 163-69, Supplemen.
    4. John J. McCall, 1971. "A Markovian of Income Dynamics," UCLA Economics Working Papers 011, UCLA Department of Economics.
    5. Jones, Andrew M, 1989. "A Double-Hurdle Model of Cigarette Consumption," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(1), pages 23-39, Jan.-Mar..
    6. Blundell, Richard & Ham, John & Meghir, Costas, 1987. "Unemployment and Female Labour Supply," Economic Journal, Royal Economic Society, vol. 97(388a), pages 44-64, Supplemen.
    7. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
    8. Pencavel, John, 1987. "Labor supply of men: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 1, pages 3-102 Elsevier.
    9. Paul Gregg, 1996. "It Takes Two: Employment Polarisation in the OECD," CEP Discussion Papers dp0304, Centre for Economic Performance, LSE.
    10. Giannelli, Gianna & Micklewright, John, 1995. "Why Do Women Married to Unemployed Men Have Low Participation Rates?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(4), pages 471-86, November.
    11. G. S. Maddala, 1987. "Limited Dependent Variable Models Using Panel Data," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 307-338.
    12. Maloney, Tim, 1991. "Unobserved Variables and the Elusive Added Worker Effect," Economica, London School of Economics and Political Science, vol. 58(230), pages 173-87, May.
    13. Kell, Michael & Wright, Jane, 1990. "Benefits and the Labour Supply of Women Married to Unemployed Men," Economic Journal, Royal Economic Society, vol. 100(400), pages 119-26, Supplemen.
    14. Davies, Richard B & Elias, Peter & Penn, Roger, 1992. "The Relationship between a Husband's Unemployment and His Wife's Participation in the Labour Force," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(2), pages 145-71, May.
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    Cited by:
    1. Donal O'Neill & Olive Sweetman & Brian Nolan & Tim Callan, 1998. "Female Labour supply and Income Inequality in Ireland," Economics, Finance and Accounting Department Working Paper Series n790698, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.

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