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The Effect of Benefits on Single Motherhood in Europe

  • Gonzalez, Libertad

    ()

    (Universitat Pompeu Fabra)

This paper uses data from the eight waves of the European Community Household Panel (1994-2001) to estimate the impact of welfare benefits on the incidence of single motherhood and headship among young women across European countries. The regressions include country fixed effects as well as time trends that are allowed to vary by country, to account for fixed and trending unmeasured factors that could influence both benefit levels and family formation. The analysis also accounts for individual characteristics and labor market conditions. The results suggest that benefit levels have a small but significant positive effect on the prevalence of single mothers. An increase in yearly benefits of 1,000 euros is estimated to increase the incidence of single mother families by about 2 percent.

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File URL: http://ftp.iza.org/dp2026.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2026.

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Length: 41 pages
Date of creation: Mar 2006
Date of revision:
Publication status: published in: Labour Economics, 2007, 14 (3), 393-412
Handle: RePEc:iza:izadps:dp2026
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  6. Josh Angrist, 2002. "How Do Sex Ratios Affect Marriage And Labor Markets? Evidence From America'S Second Generation," The Quarterly Journal of Economics, MIT Press, vol. 117(3), pages 997-1038, August.
  7. Mark R. Rosenzweig, 1999. "Welfare, Marital Prospects, and Nonmarital Childbearing," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S3-S32, December.
  8. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug..
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  17. Robert J. Willis, 1999. "A Theory of Out-of-Wedlock Childbearing," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S33-S64, December.
  18. Akerlof, George A & Yellen, Janet L & Katz, Michael L, 1996. "An Analysis of Out-of-Wedlock Childbearing in the United States," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 277-317, May.
  19. Sheila Krein & Andrea Beller, 1988. "Educational attainment of children from single-parent families: Differences by exposure, gender, and race," Demography, Springer, vol. 25(2), pages 221-234, May.
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  24. Moffitt, Robert, 1990. "The effect of the U.S. welfare system on marital status," Journal of Public Economics, Elsevier, vol. 41(1), pages 101-124, February.
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