Literature Review on the Impact of Welfare Policy Design on Children and Youth

4 Pages Posted: 11 Sep 2020 Last revised: 28 Sep 2020

See all articles by Barbara Broadway

Barbara Broadway

University of Melbourne - Melbourne Institute: Applied Economic & Social Research; ARC Centre of Excellence for Children and Families over the Life Course

Tessa LoRiggio

affiliation not provided to SSRN

Chris Ryan

University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Anna Zhu

RMIT University

Date Written: August 7, 2020

Abstract

We review the empirical literature on the causal effects of welfare-to-work policies on the employment of low-income parents and the intergenerational impacts on their children. We focus on welfare policies that change benefit levels, activity requirements, time-limits and inwork benefits. These policies may affect children through several mechanisms, including changes in family income, time spent with parents, and attitudes towards work or welfare. To unpack these mechanisms and understand the net effects of these policies, we assess how the impact on children varies across outcomes, home environments and institutional settings. Overall, the literature shows that income tax credits are an attractive policy, simultaneously increasing employment and improving child development outcomes. In contrast, other policies that boost employment either have no or negative impacts on child development.

Keywords: Literature review; Welfare policy; Intergenerational impacts

JEL Classification: I38, J13, J12

Suggested Citation

Broadway, Barbara and LoRiggio, Tessa and Ryan, Chris and Zhu, Anna, Literature Review on the Impact of Welfare Policy Design on Children and Youth (August 7, 2020). Melbourne Institute Working Paper No. 12/20, Available at SSRN: https://ssrn.com/abstract=3690069 or http://dx.doi.org/10.2139/ssrn.3690069

Barbara Broadway (Contact Author)

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

HOME PAGE: http://www.melbourneinstitute.com/

ARC Centre of Excellence for Children and Families over the Life Course ( email )

Tessa LoRiggio

affiliation not provided to SSRN

Chris Ryan

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

Anna Zhu

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

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