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Labour Supply Disincentives of Income Support: An Analysis of Single Mothers with No Qualifications in the UK

Author

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  • Zeenat Soobedar

    () (Queen Mary, University of London)

Abstract

This paper examines the labour supply disincentives of the Income Support system among single mothers with no qualifications in the UK. It uses a regression discontinuity approach that exploits the age-eligibility rule establishing automatic withdrawal of Income Support for single mothers whose youngest child turns 16. At this cut-off age, barely ineligible mothers experience an 8.5% increase in their probability of working and an increase in hours of work of about 3. This is consistent with pronounced labour supply disincentives of the income support policy.

Suggested Citation

  • Zeenat Soobedar, 2009. "Labour Supply Disincentives of Income Support: An Analysis of Single Mothers with No Qualifications in the UK," Working Papers 656, Queen Mary University of London, School of Economics and Finance.
  • Handle: RePEc:qmw:qmwecw:wp656
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    File URL: http://www.econ.qmul.ac.uk/media/econ/research/workingpapers/archive/wp656.pdf
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    More about this item

    Keywords

    Single mothers; Income Support; Labour supply; Regression discontinuity;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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