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...

We estimate a dynamic model of employment, human capital accumulation — including education, and savings for women in the UK, exploiting policy changes. We analyze both the incentive effects and the welfare implications of tax credits and income support programs and we account for their...

This paper assesses the ability of a structural labor supply model to predict the impacts of a welfare policy change by studying two state welfare reform experiments conducted in Minnesota (MN) and Vermont (VT) during the mid-1990s. I estimate and evaluate a static discrete choice model of labor...

This paper considers the effect of child care costs on two labor market outcomes for single mothers - whether to participate in the labor market and whether to receive welfare. Hourly child care expenditures are estimated for all women in the sample (using data drawn from the 1992 and 1993...

In this paper we develop a dynamic structural life-cycle model of labor supply behavior which fully accounts for the effect of income tax and transfers on labor supply incentives. Additionally, the model recognizes the demand side driven rationing risk that might prevent individuals from...

The twin problem of in-work poverty and persistent labour market difficulties of low-skilled individuals has been one of the most important drivers of tax-benefit policy reforms in OECD countries in recent years. Employment-conditional cash transfers to individuals facing particular...

In this chapter I discuss the history and basic incentive effects of two key U.S. cash assistance programs aimed at families with children. Starting roughly in the 1980s, critics of the Aid to Families with Dependent Children (AFDC) program argued that the program -- designed largely to cut...

This study examines the desired parameters for the institution of an earned income tax credit (EITC) - a subsidy for low wage earners - in Israel. The goal of the system would be to encourage individuals with low earning potential to enter the labor market and to reduce poverty among households...

This paper formulates a model to examine the effects of changes in tax-benefit policy on the behavior of divorced parents and the well-being of children in single-parent households. Noncustodial parents choose the level of a child support payment to transfer to custodians. These, in turn, decide...