From Welfare to Work: Evaluating a Proposed Tax and Benefit Reform Targeted at Single Mothers in Sweden

Lennart Flood, Elina Pylkkänen () and Roger Wahlberg
Additional contact information
Elina Pylkkänen: University of Gothenburg
Roger Wahlberg: University of Gothenburg

No 891, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we propose a tax and benefit reform to increase the working hours and to decrease the welfare participation of single mothers in Sweden. We have access to highquality tax and income data, and use a detailed tax-benefit program to generate precise budget-sets. We formulate and estimate a structural, static model of labor supply and welfare participation. The results suggest that labor supply among single mother households in Sweden is quite elastic, and that there is self-selection into welfare. The proposed reform would generate welfare-gains for virtually everyone in the sample, yet would be revenue neutral.

Keywords: tax and benefit reform; single mothers; labor supply; welfare participation (search for similar items in EconPapers)
JEL-codes: I38 J22 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2003-10
New Economics Papers: this item is included in nep-edu, nep-lab and nep-ltv
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Citations: View citations in EconPapers (9)

Published - published in: Labour, 2007, 21 (3), 443-471

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Working Paper: From Welfare to Work: Evaluating a Proposed Tax and Benefit Reform Targeted at Single Mothers in Sweden (2003)
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