Work Incentives and 'In-Work' Benefit Reforms: A Review

Posted: 19 Sep 2000

See all articles by Richard W. Blundell

Richard W. Blundell

UCL; Centre for Economic Policy Research (CEPR)

Abstract

In-work benefit reforms seek to reduce poverty and promote employment among low-income families. Using evidence from similar policies in the USA and Canada, this paper reviews the likely impact of recent UK reforms. The focus is on employment and hours. In particular, the paper examines the effectiveness of the new Working Families Tax Credit in the UK in increasing employment among low-income families. It presents evidence suggesting modest increases in employment for single parents and workerless married couples with children, but with some offsetting reductions in employment in two-earner couples with young children.

JEL Classification: H31

Suggested Citation

Blundell, Richard W., Work Incentives and 'In-Work' Benefit Reforms: A Review. Oxford Review of Economic Policy, Vol. 16, Issue 1: Labour Market and Welfare, pp. 27?44, Spring 2000, Available at SSRN: https://ssrn.com/abstract=229019

Richard W. Blundell (Contact Author)

UCL ( email )

Department of Economics
Gower Street
London, WC1E 6BT
United Kingdom
+44 20 7504 5863 (Phone)
+44 20 7916 2773 (Fax)

HOME PAGE: http://www.ucl.ac.uk/~uctp39a/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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