Fighting Lone Mothers' Poverty Through In-Work Benefits - Methodological Issues and Policy Suggestions

29 Pages Posted: 4 Sep 2013

See all articles by Chiara Pronzato

Chiara Pronzato

University of Essex - Institute for Social and Economic Research (ISER)

Date Written: August 30, 2013

Abstract

Lone mothers are overrepresented among poor people in many European countries. In 1998, in Norway, a welfare reform increased the amount of benefits and introduced working requirements. Using a quasi-experimental model, Mogstad and Pronzato (2012) find a positive effect of the reform on lone mothers’ labour supply and a small reduction in poverty. Is the best result that policy makers could obtain in terms of poverty reduction? In this paper, I estimate a discrete choice model of earnings and welfare participation decisions, and use the behavioural estimates to derive the policy parameters which would have minimized poverty among lone mothers.

Keywords: lone mothers, in-work benefits, poverty, discrete choice models, comparison of methods

JEL Classification: I380, J220, C250

Suggested Citation

Pronzato, Chiara, Fighting Lone Mothers' Poverty Through In-Work Benefits - Methodological Issues and Policy Suggestions (August 30, 2013). CESifo Working Paper Series No. 4375. Available at SSRN: https://ssrn.com/abstract=2319866

Chiara Pronzato (Contact Author)

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

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