Do in-work benefits work for low-skilled workers?

Bruno Van der Linden

IZA World of Labor, 2021, No 246v2, 246

Abstract: High risk of poverty and low employment rates are widespread among low-skilled groups, especially in the case of some household compositions (e.g. single mothers). “Making-work-pay” policies have been advocated for and implemented to address these issues. They alleviate the above-mentioned problems without providing a disincentive to work. However, do they deliver on their promises? If they do reduce poverty and enhance employment, is it possible to determine their effects on indicators of well-being, such as mental health and life satisfaction, or on the acquisition of human capital?

Keywords: making work pay; inactivity trap; redistribution; single mothers; Earned Income Tax Credit; Working Tax Credit (search for similar items in EconPapers)
JEL-codes: J30 J32 J8 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (11)

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Journal Article: Do in-work benefits work for low-skilled workers? (2016)
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