In this paper we investigate whether local governments react on the welfare benefit levels in neighboring jurisdictions when setting their own benefit levels. We solve the simultaneity problem arising from the welfare game by utilizing a policy intervention; more specifically, we use a centrally...

Standard economic theory implies that the labelling of cash transfers or cash-equivalents (e.g. child benefits, food stamps) should have no effect on spending patterns. The empirical literature to date does not contradict this proposition. We study the UK Winter Fuel Payment (WFP), a cash...

The fallout from the global economic downturn of 2008-09 is a continuing source of stress on families and a constraint on government policies. How can social policies contribute to a quick and equitable recovery from the crisis and how can they best respond to the difficulties that households...

Redistribution is one of the principal mechanisms through which countries secure low income inequality. Maintaining moderately high wage levels at the low end of the distribution may be increasingly difficult and perhaps even counterproductive from an egalitarian perspective. If so,...