Blundell, Richard and Francesconi, Marco and van der Klaauw, Wilbert Anatomy of Welfare Reform Evaluation: Announcement and Implementation Effects. [["eprint_typename_scholarly-edition" not defined]]
Blundell, Richard and Francesconi, Marco and van der Klaauw, Wilbert Anatomy of Welfare Reform Evaluation: Announcement and Implementation Effects. [["eprint_typename_scholarly-edition" not defined]]
Blundell, Richard and Francesconi, Marco and van der Klaauw, Wilbert Anatomy of Welfare Reform Evaluation: Announcement and Implementation Effects. [["eprint_typename_scholarly-edition" not defined]]
Abstract
This paper formulates a simple model of female labor force decisions which embeds an in-work benefit reform and explicitly allows for announcement and implementation effects. We explore several mechanisms through which women can respond to the announcement of a reform that increases in-work benefits, including sources of intertemporal substitution, human capital accumulation, and labor market frictions. Using the model's insights and information of the precise timing of the announcement and implementation of a major UK in-work benefit reform, we estimate its effects on single mothers' behavior. We find important announcement effects on employment decisions. We show that this finding is consistent with the presence of short-run frictions in the labor market. Evaluations of this reform which ignore such effects produce impact effect estimates that are biased downwards by 15 to 35 percent.
Item Type: | ["eprint_typename_scholarly-edition" not defined] |
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Uncontrolled Keywords: | D10; J13; J22; policy evaluation; in-work benefit; anticipation effects; labor market frictions; intertemporal substitution |
Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 27 Jun 2012 14:09 |
Last Modified: | 15 Jan 2022 00:39 |
URI: | http://repository.essex.ac.uk/id/eprint/2571 |