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The Effects of In‐Work Benefit Reform in Britain on Couples: Theory and Evidence

Francesconi, Marco and Rainer, Helmut and Van Der Klaauw, Wilbert (2009) 'The Effects of In‐Work Benefit Reform in Britain on Couples: Theory and Evidence.' The Economic Journal, 119 (535). F66-F100. ISSN 0013-0133

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This article develops a simple model of household decisions that explicitly accounts for the role played by the Working Families'Tax Credit (WFTC) to examine its effects on couples in Britain. The main implications of the model are tested using panel data from the British Household Panel Survey collected between 1991 and 2002. Overall, the financial incentives of the reform had small and statistically insignificant effects on a wide range of married mothers'decisions. Women's responses, however, were highly heterogeneous, depending on their partners'labour supply and earnings. © Journal compilation © 2009 by the Royal Economic Society (Registered Charity No. 231508).

Item Type: Article
Uncontrolled Keywords: C23; H31; I38; J12; J13; J22; tax credit; household labour supply; intrahousehold bargaining; divorce
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 27 Jun 2012 10:31
Last Modified: 15 Jan 2022 00:25

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