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

Chiara Pronzato

CESifo Economic Studies, 2015, vol. 61, issue 1, 95-122

Abstract: Lone mothers are overrepresented among the poor in many European countries, with detrimental consequences for them and their children. Even in Norway, which is known for its successful economic and welfare development, lone mothers were at least three times more likely to be poor than married mothers. To redress this issue, the Norwegian government instituted a welfare reform in 1998, increasing lone-parent benefit levels and introducing working requirements. Using a quasi-experimental model, Mogstad and Pronzato (2008) found that the reform had a positive effect on lone mothers’ labor supply and slightly reduced poverty. Yet given the extent of public resources invested, was this the most that policy makers could expect in terms of reducing poverty? To answer this question, I estimate a discrete choice model of work and welfare participation decisions, and use the behavioral estimates to derive the policy parameters that would have minimized poverty among lone mothers. To produce more robust results, a prerequisite for developing policy recommendations, the discrete choice model is validated by comparing its predictions with the estimated effects of the reform obtained from a quasi-experiment (Mogstad and Pronzato 2008). (JEL codes: I38, J22, C25)

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1093/cesifo/ifu021 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Fighting Lone Mothers’ Poverty through In-Work Benefits Methodological Issues and Policy Suggestions (2014)
Working Paper: Fighting Lone Mothers' Poverty through in-Work Benefits - Methodological Issues and Policy Suggestions (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:cesifo:v:61:y:2015:i:1:p:95-122.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

CESifo Economic Studies is currently edited by Panu Poutvaara

More articles in CESifo Economic Studies from CESifo Group Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().