Female Labor Supply, Human Capital and Welfare Reform

Richard Blundell (), Monica Costa Dias, Costas Meghir and Jonathan Shaw

No 1892R2, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: We estimate a dynamic model of employment, human capital accumulation - including education, and savings for women in the UK, exploiting tax and benefit reforms, and use it to analyze the effects of welfare policy. We find substantial elasticities for labor supply and particularly for lone mothers. Returns to experience, which are important in determining the longer-term effects of policy, increase with education, but experience mainly accumulates when in full-time employment. Tax credits are welfare improving in the UK and increase lone-mother labor supply, but the employment effects do not extend beyond the period of eligibility. Marginal increases in tax credits improve welfare more than equally costly increases in income support or tax cuts.

Keywords: Female labor supply; Welfare reform; Tax credits; Education choice; Dynamic discrete choice models; Life cycle models (search for similar items in EconPapers)
JEL-codes: H2 H3 J22 J24 (search for similar items in EconPapers)
Pages: 79 pages
Date: 2013-04, Revised 2016-03
New Economics Papers: this item is included in nep-dcm, nep-dem, nep-eur, nep-hrm, nep-ltv and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (172)

Published in Econometrica (September 2016), 84(5): 1705-1753

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Related works:
Journal Article: Female Labor Supply, Human Capital, and Welfare Reform (2016)
Working Paper: Female labour supply, human capital and welfare reform (2016)
Working Paper: Female Labor Supply, Human Capital and Welfare Reform (2015)
Working Paper: Female Labour Supply, Human Capital and Welfare Reform (2013)
Working Paper: Female Labor Supply, Human Capital and Welfare Reform (2013)
Working Paper: Female labour supply, human capital and welfare reform (2013)
Working Paper: Female labour supply, human capital and welfare reform (2013)
Working Paper: Female Labour Supply, Human Capital and Welfare Reform (2013)
Working Paper: Female Labour Supply, Human Capital and Welfare Reform (2013)
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