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

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  • Bettendorf, Leon J.H.
  • Folmer, Kees
  • Jongen, Egbert L.W.

Abstract

We study the extension of an EITC for single mothers in the Netherlands to mothers with a youngest child 12 to 15years of age. This reform increased the net income gain of moving into employment for the treatment group by 31%. Using both DD and RD we show that this reform 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 finding may be due to our treatment group of single mothers of which the youngest child is relatively old, or because the reform we consider was less salient. Furthermore, related studies typically study changes in a tax credit which was part of a broader reform package, making it harder to isolate the effect of the tax credit. Also, we show that using single women without children as the control group, as is commonly done in related studies, can be problematic.

Suggested Citation

  • Bettendorf, Leon J.H. & Folmer, Kees & Jongen, Egbert L.W., 2014. "The dog that did not bark: The EITC for single mothers in the Netherlands," Journal of Public Economics, Elsevier, vol. 119(C), pages 49-60.
    • Handle: RePEc:eee:pubeco:v:119:y:2014:i:c:p:49-60
    DOI: 10.1016/j.jpubeco.2014.07.010
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    Cited by:

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    2. Henk-Wim Boer & Egbert L. W. Jongen, 2023. "Analysing tax-benefit reforms in the Netherlands using structural models and natural experiments," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 179-209, January.
    3. Bruno Van der Linden, 2021. "Do in-work benefits work for low-skilled workers?," World of Labour, LISER, pages 246-246, June.
    4. Laura V. Zimmermann, 2024. "Why Guarantee Employment? Evidence from a Large Indian Public-Works Program," Economic Development and Cultural Change, University of Chicago Press, vol. 72(4), pages 2031-2067.
    5. Slavko Bezeredi & Marko Ledić & Ivica Rubil & Ivica Urban, 2019. "Making work pay in Croatia: An ex-ante evaluation of two in-work benefits using miCROmod," International Journal of Microsimulation, International Microsimulation Association, vol. 12(3), pages 28-61.
    6. Mauro Mastrogiacomo & Nicole M. Bosch & Miriam D. A. C. Gielen & Egbert L. W. Jongen, 2017. "Heterogeneity in Labour Supply Responses: Evidence from a Major Tax Reform," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(5), pages 769-796, October.
    7. Cammeraat, Emile & Jongen, Egbert L. W. & Koning, Pierre, 2017. "Preventing NEETs during the Great Recession: The Effects of a Mandatory Activation Program for Young Welfare Recipients," IZA Discussion Papers 11090, Institute of Labor Economics (IZA).
    8. Henk-Wim Boer & Egbert Jongen, 2023. "Optimal income support for lone parents in the Netherlands: are we there yet?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(3), pages 573-589, September.
    9. Marike Knoef & Jan C. van Ours, 2016. "How to stimulate single mothers on welfare to find a job: evidence from a policy experiment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 1025-1061, October.
    10. Brewer, Mike & Cribb, Jonathan, 2016. "Lone Parents, Time-Limited In-Work Credits and the Dynamics of Work and Welfare," IZA Discussion Papers 10414, IZA Network @ LISER.
    11. Laun, Lisa, 2019. "In-work benefits across Europe," Working Paper Series 2019:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    12. de Boer, Henk-Wim & Jongen, Egbert L. W., 2020. "Analysing Tax-Benefit Reforms in the Netherlands: Using Structural Models and Natural Experiments," IZA Discussion Papers 12892, IZA Network @ LISER.
    13. Lundberg, Jacob & Norell, John, 2018. "Taxes, benefits and labour force participation: A survey of the quasi-experimental literature," Ratio Working Papers 313, The Ratio Institute.
    14. Emile Cammeraat & Egbert Jongen & Pierre Koning, 2022. "Preventing NEETs during the Great Recession: the effects of mandatory activation programs for young welfare recipients," Empirical Economics, Springer, vol. 62(2), pages 749-777, February.

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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