Channels of labour supply responses of lone parents to changed work incentives

Xiaodong GONG, Robert Breunig

    Research output: Contribution to journalArticle

    5 Citations (Scopus)
    6 Downloads (Pure)

    Abstract

    In this article, we investigate the response of female lone parents to two reforms to the welfare system in Australia. Using childless single women as a control group, we find the first set of reforms increased hours worked substantially through job changes. The second set had much more modest effects on hours, which included a decrease in hours worked for those with children younger than six, but did effect an increase in participation. Our results highlight the heterogeneity of response of lone parents to welfare interventions and provide support for the importance of accounting for fixed costs and for within-job rigidities.
    Original languageEnglish
    Pages (from-to)916-939
    Number of pages24
    JournalOxford Economic Papers
    Volume66
    Issue number4
    DOIs
    Publication statusPublished - 2014

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    Labor supply
    Lone parents
    Supply response
    Work incentives
    Hours worked
    Participation
    Job change
    Fixed costs
    Rigidity

    Cite this

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    Channels of labour supply responses of lone parents to changed work incentives. / GONG, Xiaodong; Breunig, Robert.

    In: Oxford Economic Papers, Vol. 66, No. 4, 2014, p. 916-939.

    Research output: Contribution to journalArticle

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    AB - In this article, we investigate the response of female lone parents to two reforms to the welfare system in Australia. Using childless single women as a control group, we find the first set of reforms increased hours worked substantially through job changes. The second set had much more modest effects on hours, which included a decrease in hours worked for those with children younger than six, but did effect an increase in participation. Our results highlight the heterogeneity of response of lone parents to welfare interventions and provide support for the importance of accounting for fixed costs and for within-job rigidities.

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