Labour Supply Disincentives of Income Support: An Analysis of Single Mothers with No Qualifications in the UK

Zeenat Soobedar de Villeneuve

No 656, Working Papers from Queen Mary University of London, School of Economics and Finance

Abstract: This paper examines the labour supply disincentives of the Income Support system among single mothers with no qualifications in the UK. It uses a regression discontinuity approach that exploits the age-eligibility rule establishing automatic withdrawal of Income Support for single mothers whose youngest child turns 16. At this cut-off age, barely ineligible mothers experience an 8.5% increase in their probability of working and an increase in hours of work of about 3. This is consistent with pronounced labour supply disincentives of the income support policy.

Keywords: Single mothers; Income Support; Labour supply; Regression discontinuity (search for similar items in EconPapers)
JEL-codes: C21 I38 J12 (search for similar items in EconPapers)
Date: 2009-12-01
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Persistent link: https://EconPapers.repec.org/RePEc:qmw:qmwecw:656

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