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The effects of in-work benefit reform in Britain on couples: Theory and evidence

Francesconi, M and Rainer, H and Van Der Klaauw, W (2009) 'The effects of in-work benefit reform in Britain on couples: Theory and evidence.' Economic Journal, 119 (535). ISSN 0013-0133

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Abstract

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
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 27 Jun 2012 10:31
Last Modified: 17 Aug 2017 18:12
URI: http://repository.essex.ac.uk/id/eprint/2549

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