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Female Labour Supply, Human Capital and Welfare Reform

  • Richard Blundell
  • Monica Costa Dias
  • Costas Meghir
  • Jonathan M. Shaw

We estimate a dynamic model of employment, human capital accumulation - including education, and savings for women in the UK, exploiting policy changes. We analyze both the incentive effects and the welfare implications of tax credits and income support programs and we account for their insurance value. We find important incentive effects on education choice and labor supply, with single mothers having the most elastic labor supply. Returns to experience increase with education, but experience only accumulates when in full-time employment. Finally, marginal increases in tax credits are preferred to equally costly income support or to tax cuts.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19007.

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Date of creation: May 2013
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Handle: RePEc:nbr:nberwo:19007
Note: ED LS PE
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