Channels of Labour Supply Responses of Lone Parents to Changed Work Incentives

33 Pages Posted: 18 Oct 2013

See all articles by Xiaogong Gong

Xiaogong Gong

Australian National University (ANU)

Robert V. Breunig

Australian National University (ANU) - Crawford School of Public Policy

Date Written: October 1, 2013

Abstract

In this paper, we investigate the response of female lone parents to two reforms to the welfare system in Australia. We look at changes to both hours and participation and focus on the channels of adjustment, in particular the role of job changes for adjustment in hours. We highlight the relationship between policy design and heterogeneous outcomes. Workers/non-workers and mothers with high/low education respond differently to different policies. We find evidence of within job rigidities as the adjustment of working hours happens primarily through changing jobs. Our findings also provide support for the importance of accounting for fixed costs of working.

Keywords: Channel of Labour Supply Adjustment, Lone Mothers, Job Changes, Difference in Differences

JEL Classification: C23, H31, I38, J13, J22

Suggested Citation

Gong, Xiaogong and Breunig, Robert V., Channels of Labour Supply Responses of Lone Parents to Changed Work Incentives (October 1, 2013). Crawford School SPI Working Paper 03/2013. Available at SSRN: https://ssrn.com/abstract=2342030 or http://dx.doi.org/10.2139/ssrn.2342030

Xiaogong Gong (Contact Author)

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

Robert V. Breunig

Australian National University (ANU) - Crawford School of Public Policy ( email )

7 Liversidge Street
Lennox Crossing
Canberra, ACT 0200
Australia
61261252148 (Phone)

HOME PAGE: http://https://crawford.anu.edu.au/crawford_people/content/staff/rbreunig.php

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