The Labour Market Effects of ‘Working for Families’ in New Zealand

21 Pages Posted: 5 Jun 2018

See all articles by John Creedy

John Creedy

Victoria University of Wellington

Joseph Mercante

Australian Treasury

Penny Mok

Government of New Zealand - Ministry of Business, Innovation & Employment

Date Written: June 2018

Abstract

This article examines, using a behavioural microsimulation model for New Zealand, the impact of the major package of welfare reforms collectively referred to as ‘Working for Families’ (WfF). These reforms were announced in May 2004 and involved a phased introduction of changes, with annual modifications from October 2004 until April 2007. Concentrating on welfare payments for families with dependent children, this remains a cornerstone of the New Zealand welfare system. The simulation takes a backward‐looking perspective, by comparing labour supply under the 2008 database and tax structure with that obtained using the 2008 data and 2004 tax structure (suitably adjusted for inflation).

Suggested Citation

Creedy, John and Mercante, Joseph and Mok, Penny, The Labour Market Effects of ‘Working for Families’ in New Zealand (June 2018). Australian Economic Review, Vol. 51, Issue 2, pp. 211-231, 2018, Available at SSRN: https://ssrn.com/abstract=3188509 or http://dx.doi.org/10.1111/1467-8462.12260

John Creedy (Contact Author)

Victoria University of Wellington ( email )

P.O. Box 600
Wellington, 6140
New Zealand

Joseph Mercante

Australian Treasury ( email )

Canberra, ACT 2600
Australia

Penny Mok

Government of New Zealand - Ministry of Business, Innovation & Employment ( email )

15 Stout St
Wellington, 6011
New Zealand

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