The impact of a time-limited, targeted in-work benefit in the medium-term: an evaluation of In Work Credit
Conventional in-work benefits (IWB) are means-tested, open to all workers with sufficiently low income, and usually paid without a time-limit. This paper evaluates an IWB with an alternative design that was aimed at lone parents in the UK and piloted in one third of the country, and that featured a time-limit, and was paid conditional on previous receipt of welfare. It increased flows off welfare and into work, and these positive effects did not diminish when recipients reached the 12 month time-limit for receiving the supplement. Job retention of recipients was good, but this cannot be attributed to the IWB.
|Date of creation:||20 Feb 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK|
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- David Card & Dean R. Hyslop, 2004.
"Estimating the Effects of a Time Limited Earnings Subsidy for Welfare Leavers,"
NBER Working Papers
10647, National Bureau of Economic Research, Inc.
- David Card & Dean R. Hyslop, 2005. "Estimating the Effects of a Time-Limited Earnings Subsidy for Welfare-Leavers," Econometrica, Econometric Society, vol. 73(6), pages 1723-1770, November.
- Ham, John C & LaLonde, Robert J, 1996. "The Effect of Sample Selection and Initial Conditions in Duration Models: Evidence from Experimental Data on Training," Econometrica, Econometric Society, vol. 64(1), pages 175-205, January.
- James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
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