Optimal tax rules are used to evaluate the optimality of taxation for lone mothers in Germany and Britain. The theoretical model is combined with elasticities derived from the structural estimation of lone mothers' labour supply. For both countries we do not find that in-work credits with...

Child poverty in Britain fell in Labour's first term, though by much less than micro-simulation exercises suggested. Nonetheless, the decline is statistically significant, and is greater if measured just in the last 6 months of 2000/1, rather than the whole year. The decline also proves robust...