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The Means Testing of Benefits and the Labour Supply of the wives of Unemployed Men: Results from a Fixed Effects Model

  • Aedin Doris

    ()

    (Economics, National University of Ireland, Maynooth)

Women married to unemployed men in Britain have lower participation rates than those married to employed men. Possible reasons include unfavourable local labour market conditions affecting both, their both having poor labour market characteristics, and the means testing of benefits, which creates a disincentive for the wife to work. Using a British panel survey of unemployed men and their families, the means testing effect is estimated; unobservable characteristics are accounted for by using a fixed effects model. The results show no effect of means testing on the labour supply of the wives.

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File URL: http://repec.maynoothuniversity.ie/mayecw-files/N930999.pdf
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Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n930999.

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Length: 44 pages
Date of creation: Sep 1999
Date of revision:
Handle: RePEc:may:mayecw:n930999
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Phone: 353-1-7083728
Fax: 353-1-7083934
Web page: http://www.maynoothuniversity.ie/economics-finance-and-accounting

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  1. Borsch-Supan, Axel, 1990. "Panel data analysis of housing choices," Regional Science and Urban Economics, Elsevier, vol. 20(1), pages 65-82, June.
  2. Nickell, Stephen & Narendranathan, Wiji & Stern, Jon & Garcia, Jaime, 1989. "The Nature of Unemployment in Britain: Studies of the DHSS Cohort," OUP Catalogue, Oxford University Press, number 9780198285489, May.
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  8. Rosenzweig, Mark R & Wolpin, Kenneth I, 1994. "Parental and Public Transfers to Young Women and Their Children," American Economic Review, American Economic Association, vol. 84(5), pages 1195-1212, December.
  9. Borsch-Supan, Axel & Pollakowski, Henry O., 1990. "Estimating housing consumption adjustments from panel data," Journal of Urban Economics, Elsevier, vol. 27(2), pages 131-150, March.
  10. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
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  12. Davies, Richard B & Elias, Peter & Penn, Roger, 1992. "The Relationship between a Husband's Unemployment and His Wife's Participation in the Labour Force," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(2), pages 145-71, May.
  13. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers 185, Massachusetts Institute of Technology (MIT), Department of Economics.
  14. Pencavel, John, 1987. "Labor supply of men: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 1, pages 3-102 Elsevier.
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  16. Cecchetti, Stephen G., 1986. "The frequency of price adjustment : A study of the newsstand prices of magazines," Journal of Econometrics, Elsevier, vol. 31(3), pages 255-274, April.
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