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Channels of Labour Supply Responses of Lone Parents to Changed Work Incentives

Author

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  • Gong, Xiaodong

    (NATSEM, University of Canberra)

  • Breunig, Robert

    (Australian National University)

Abstract

In this paper, we investigate the response of female lone parents to two reforms to the welfare system in Australia. We look at changes to both hours and participation and focus on the channels of adjustment, in particular the role of job changes for adjustment in hours. We highlight the relationship between policy design and heterogeneous outcomes. Workers/non-workers and mothers with high/low education respond differently to different policies. We find evidence of within job rigidities as the adjustment of working hours happens primarily through changing jobs. Our findings also provide support for the importance of accounting for fixed costs of working.

Suggested Citation

  • Gong, Xiaodong & Breunig, Robert, 2013. "Channels of Labour Supply Responses of Lone Parents to Changed Work Incentives," IZA Discussion Papers 7574, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp7574
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    References listed on IDEAS

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    Cited by:

    1. Michael C. Knaus & Steffen Otterbach, 2019. "Work Hour Mismatch And Job Mobility: Adjustment Channels And Resolution Rates," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 227-242, January.
    2. Suziedelyte, Agne & Zhu, Anna, 2021. "The intergenerational impact of reduced generosity in the social safety net," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 1-24.
    3. Deborah A. Cobb‐Clark & Lihini De Silva, 2021. "Participation, Unemployment, and Wages," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 482-493, December.
    4. Ruud Gerards & Riccardo Welters, 2020. "Liquidity Constraints, Unemployed Job Search and Labour Market Outcomes," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(3), pages 625-646, June.
    5. Alameddine, Mohamad & Otterbach, Steffen & Rafii, Bayan & Sousa-Poza, Alfonso, 2018. "Work hour constraints in the German nursing workforce: A quarter of a century in review," Health Policy, Elsevier, vol. 122(10), pages 1101-1108.
    6. Hayley Fisher & Anna Zhu, 2019. "The Effect of Changing Financial Incentives on Repartnering," The Economic Journal, Royal Economic Society, vol. 129(623), pages 2833-2866.
    7. Belinda Hewitt, 2021. "The Dynamics of Family Formation and Dissolution," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 506-517, December.
    8. Gerards, Ruud & Welters, Riccardo, 2022. "Job search in the presence of a stressor: Does financial hardship change the effectiveness of job search?," Journal of Economic Psychology, Elsevier, vol. 90(C).
    9. Redmond, Paul & McGuinness, Seamus & Keane, Claire, 2020. "The Impact of One Parent Family Payment Reforms on the Labour Market Outcomes of Lone Parents," IZA Discussion Papers 13109, Institute of Labor Economics (IZA).
    10. Avram, Silvia & Brewer, Mike & Salvatori, Andrea, 2018. "Can't work or won't work: Quasi-experimental evidence on work search requirements for single parents," Labour Economics, Elsevier, vol. 51(C), pages 63-85.
    11. 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.

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    More about this item

    Keywords

    channel of labour supply adjustment; lone mothers; job changes; difference-in-differences;
    All these keywords.

    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
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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