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Welfare reform: Employment, mental health and intrahousehold insurance

Author

Listed:
  • Mike Brewer

    (Resolution Foundation)

  • Thang Dang

    (Centre for Fertility and Health, Norwegian Insititute of Public Health)

  • Emma Tominey

    (Department of Economics, University of York; HCEO; IZA)

Abstract

The UK Universal Credit (UC) welfare reform simplified the benefits system, combining six benefit applications into one, whilst creating strict incentives for full-time employment. Exploiting a staggered roll-out, we analyse the impact of entering unemployment under UC compared to the former system on mental health, future employment transitions and intrahousehold labour supply reactions. Groups with fewer intrahousehold insurance possibilities - single adults and lone parents - experience a mental health deterioration of 8.4-13.9% sd. Whilst these groups experience an increase in employment transition, it is to part-time work. For couples UC creates an intrahousehold reaction, increasing partners' labour participation and UC partially or fully mitigates the mental health consequences of unemployment.

Suggested Citation

  • Mike Brewer & Thang Dang & Emma Tominey, 2023. "Welfare reform: Employment, mental health and intrahousehold insurance," CEPEO Working Paper Series 23-06, UCL Centre for Education Policy and Equalising Opportunities.
    • Handle: RePEc:ucl:cepeow:23-06
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    More about this item

    Keywords

    Welfare reform; Mental health; Employment transitions; Universal Credit; Intrahousehold insurance;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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