Literature review on the impact of welfare policy design on children and youth

Barbara Broadway (), Tessa Loriggio, Chris Ryan (), Tessa Loriggio and Anna Zhu
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Barbara Broadway: Melbourne Institute: Applied Economic & Social Research, The University of Melbourne, https://findanexpert.unimelb.edu.au/profile/353961-barbara-broadway
Tessa Loriggio: Royal Melbourne Institute of Technology
Chris Ryan: Melbourne Institute: Applied Economic & Social Research, The University of Melbourne, https://findanexpert.unimelb.edu.au/profile/58384-christopher-ryan
Tessa Loriggio: Royal Melbourne Institute of Technology
Anna Zhu: Royal Melbourne Institute of Technology

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

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 (search for similar items in EconPapers)
JEL-codes: I38 J12 J13 (search for similar items in EconPapers)
Pages: 4pp
Date: 2020-08
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2020n12

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