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Single Mothers and Incentives to Work: The French Experience

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Author Info
Libertad González Luna ()

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Abstract

This paper analyzes the effect of the 1998 reform of the French single parents allowance on the labor supply of single mothers with very young children. The reform aimed at encouraging participation by allowing eligible single parents to accumulate benefits and labor earnings for a limited period of time. Using data from the French Employment Survey, the analysis shows that single mothers affected by the reform had experienced a significant increase in their employment rate four years after the reform was implemented. During the same period, the employment rate of married mothers with young children did not experience a significant change, suggesting that at least part of the increase was a consequence of the reform. These results provide some evidence that benefit schedules that provide financial incentives to work can have significant effects in getting single moms back to work, even in the presence of very young children.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/818.pdf
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Publisher Info
Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 818.

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Date of creation: Mar 2005
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Handle: RePEc:upf:upfgen:818

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Web page: http://www.econ.upf.edu/

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Related research
Keywords: Single mothers; labor supply; welfare benefits;

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Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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  1. Gonzalez, Libertad, 2004. "Single Mothers and Work," IZA Discussion Papers 1097, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Marc Gurgand & David Margolis, 2005. "Does work pay in France ? Monetary incentives and the guaranteed minimum income," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00193282_v1, HAL. [Downloadable!]
    Other versions:
  3. Christopher J. Ruhm, 2000. "Parental Employment and Child Cognitive Development," NBER Working Papers 7666, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x.
  5. Nada Eissa & Henrik Jacobsen Kleven & Claus Thustrup Kreiner, 2004. "Evaluation of Four Tax Reforms in the United States: Labor Supply and Welfare Effects for Single Mothers," NBER Working Papers 10935, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Paul Gregg & Susan Harkness, 2003. "Welfare Reform and Lone Parents Employment in the UK," The Centre for Market and Public Organisation 03/072, Department of Economics, University of Bristol, UK. [Downloadable!]
  7. Jenkins, Stephen P, 1992. "Lone Mothers' Employment and Full-Time Work Probabilities," Economic Journal, Royal Economic Society, vol. 102(411), pages 310-20, March. [Downloadable!] (restricted)
  8. Paul Gregg & Elizabeth Washbrook & Carol Propper & Simon Burgess, 2005. "The Effects of a Mother's Return to Work Decision on Child Development in the UK," Economic Journal, Royal Economic Society, vol. 115(501), pages F48-F80, 02. [Downloadable!] (restricted)
  9. David Card, 1991. "Intertemporal Labor Supply: An Assessment," NBER Working Papers 3602, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1). [Downloadable!] (restricted)
  11. Gurgand, M. & Margolis, D., 2001. "RMI et revenus du travail : une evaluation des gains financiers a l'emploi," Dossiers de recherche- 09, Centre d'etudes de l'emploi.
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