Labour supply disincentives of Income Support: an analysis of single mothers with no qualifications in the UK

Soobedar, Zeenat (2009). Labour supply disincentives of Income Support: an analysis of single mothers with no qualifications in the UK. Queen Mary, University of London.

URL: http://www.econ.qmul.ac.uk/papers/wp/WP656.HTM

Abstract

This paper examines the labour supply disincentives of the Income Support system among single mothers with no qualifications in the UK. It uses a regression discontinuity approach that exploits the age-eligibility rule establishing automatic withdrawal of Income Support for single mothers whose youngest child turns 16. At this cut-off age, barely ineligible mothers experience an 8.5% increase in their probability of working and an increase in hours of work of about 3. This is consistent with pronounced labour supply disincentives of the income support policy.

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