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The Impact of the UK New Deal for Lone Parents on Benefit Receipt

Author

Listed:
  • Dolton, Peter

    () (University of Sussex)

  • Smith, Jeffrey A.

    () (University of Wisconsin-Madison)

Abstract

This paper evaluates the UK New Deal for Lone Parents (NDLP) program, which aims to return lone parents to work. Using rich administrative data on benefit receipt histories and a "selection on observed variables" identification strategy, we find that the program modestly reduces benefit receipt among participants. Methodologically, we highlight the importance of flexibly conditioning on benefit histories, as well as taking account of complex sample designs when applying matching methods. We find that survey measures of attitudes add information beyond that contained in the benefit histories and that incorporating the insights of the recent literature on dynamic treatment effects matters even when not formally applying the related methods. Finally, we explain why our results differ substantially from those of the official evaluation of NDLP, which found very large impacts on benefit exits.

Suggested Citation

  • Dolton, Peter & Smith, Jeffrey A., 2011. "The Impact of the UK New Deal for Lone Parents on Benefit Receipt," IZA Discussion Papers 5491, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5491
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    Cited by:

    1. Zabel, Cordula, 2013. "Effects of participating in skill training and workfare on employment entries for lone mothers receiving means-tested benefits in Germany," IAB Discussion Paper 201303, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Sianesi, Barbara, 2017. "Evidence of randomisation bias in a large-scale social experiment: The case of ERA," Journal of Econometrics, Elsevier, vol. 198(1), pages 41-64.
    3. Michele Campolieti & Morley Gunderson & Jeffrey Smith, 2014. "The effect of vocational rehabilitation on the employment outcomes of disability insurance beneficiaries: new evidence from Canada," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-29, December.
    4. Carlos A. Flores & Oscar A. Mitnik, 2013. "Comparing Treatments across Labor Markets: An Assessment of Nonexperimental Multiple-Treatment Strategies," The Review of Economics and Statistics, MIT Press, pages 1691-1707.
    5. Silvia Avram & Mike Brewer & Andrea Salvatori, 2016. "Can’t work or won’t work: quasi-experimental evidence on work search requirements for single parents," IFS Working Papers W16/11, Institute for Fiscal Studies.
    6. Niedergesäss, Markus, 2012. "Duration dependence, lagged duration dependence, and occurrence dependence in individual employment histories," University of Tuebingen Working Papers in Economics and Finance 26, University of Tuebingen, Faculty of Economics and Social Sciences.
    7. Lechner, Michael & Wunsch, Conny, 2013. "Sensitivity of matching-based program evaluations to the availability of control variables," Labour Economics, Elsevier, vol. 21(C), pages 111-121.
    8. Løken, Katrine V. & Lommerud, Kjell Erik & Reiso, Katrine Holm, 2014. "Single Mothers and their children: Evaluating a work-encouraging welfare reform," Working Papers in Economics 04/14, University of Bergen, Department of Economics.
    9. Marianne P. Bitler & Hilary W. Hoynes & Thurston Domina, 2014. "Experimental Evidence on Distributional Effects of Head Start," NBER Working Papers 20434, National Bureau of Economic Research, Inc.
    10. Fredrik Andersson & Harry J. Holzer & Julia I. Lane & David Rosenblum & Jeffrey Smith, 2013. "Does Federally-Funded Job Training Work? Nonexperimental Estimates of WIA Training Impacts Using Longitudinal Data on Workers and Firms," NBER Working Papers 19446, National Bureau of Economic Research, Inc.
    11. repec:eee:labeco:v:46:y:2017:i:c:p:14-25 is not listed on IDEAS

    More about this item

    Keywords

    program evaluation; active labor market policy; matching; lone parents; New Deal;

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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