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The impact of a time-limited, targeted in-work benefit in the medium-term: an evaluation of In Work Credit

Author

Listed:
  • Crawford, Claire
  • Brewer, Mike
  • Browne, James
  • Chowdry, Haroon

Abstract

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.

Suggested Citation

  • Crawford, Claire & Brewer, Mike & Browne, James & Chowdry, Haroon, 2012. "The impact of a time-limited, targeted in-work benefit in the medium-term: an evaluation of In Work Credit," ISER Working Paper Series 2012-04, Institute for Social and Economic Research.
    • Handle: RePEc:ese:iserwp:2012-04
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    References listed on IDEAS

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    1. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    2. 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.
    3. David Card & Dean R. Hyslop, 2006. "The Dynamic Effects of an Earnings Subsidy for Long-Term Welfare Recipients: Evidence from the SSP Applicant Experiment," NBER Working Papers 12774, National Bureau of Economic Research, Inc.
    4. 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.
    5. Heckman, James J & Smith, Jeffrey A, 1999. "The Pre-programme Earnings Dip and the Determinants of Participation in a Social Programme. Implications for Simple Programme Evaluation Strategies," Economic Journal, Royal Economic Society, vol. 109(457), pages 313-348, July.
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    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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