Nothing Special   »   [go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/eee/labeco/v51y2018icp63-85.html
   My bibliography  Save this article

Can't work or won't work: Quasi-experimental evidence on work search requirements for single parents

Author

Listed:
  • Avram, Silvia
  • Brewer, Mike
  • Salvatori, Andrea
Abstract
Increasing the labour market participation of single parents, whether to boost incomes or reduce welfare spending, is a major policy objective in a number of countries. This paper presents causal evidence on the impact of work search requirements on single parents’ transitions into work and onto other benefits. We use rich administrative data on all single parent welfare recipients, and apply a difference-in-differences approach that exploits the staggered roll-out of a reform in the UK that gradually decreased the age of the youngest child at which single parents lose the right to an unconditional cash benefit. Consistent with the predictions of a simple search model, the work search requirements have heterogeneous impacts, leading some single parents to move into work, but leading some (especially those with weak previous labour market attachments) to move onto disability benefits (with no search conditionalities) or non-claimant unemployment.

Suggested Citation

  • Avram, Silvia & Brewer, Mike & Salvatori, Andrea, 2018. "Can't work or won't work: Quasi-experimental evidence on work search requirements for single parents," Labour Economics, Elsevier, vol. 51(C), pages 63-85.
  • Handle: RePEc:eee:labeco:v:51:y:2018:i:c:p:63-85
    DOI: 10.1016/j.labeco.2017.10.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S092753711630416X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.labeco.2017.10.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Yin Fok & Duncan McVicar, 2013. "Did the 2007 welfare reforms for low income parents in Australia increase welfare exits?," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    2. Xiaodong Gong & Robert Breunig, 2014. "Channels of labour supply responses of lone parents to changed work incentives," Oxford Economic Papers, Oxford University Press, vol. 66(4), pages 916-939.
    3. Jaap H. Abbring & Gerard J. Berg & Jan C. Ours, 2005. "The Effect of Unemployment Insurance Sanctions on the Transition Rate from Unemployment to Employment," Economic Journal, Royal Economic Society, vol. 115(505), pages 602-630, July.
    4. Magne Mogstad & Chiara Pronzato, 2012. "Are Lone Mothers Responsive to Policy Changes? Evidence from a Workfare Reform in a Generous Welfare State," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(4), pages 1129-1159, December.
    5. Lawson, Nicholas, 2015. "Social program substitution and optimal policy," Labour Economics, Elsevier, vol. 37(C), pages 13-27.
    6. Stephan Lindner, 2016. "How Do Unemployment Insurance Benefits Affect the Decision to Apply for Social Security Disability Insurance?," Journal of Human Resources, University of Wisconsin Press, vol. 51(1), pages 62-94.
    7. repec:adr:anecst:y:2008:i:91-92:p:17 is not listed on IDEAS
    8. Manning, Alan, 2009. "You can't always get what you want: The impact of the UK Jobseeker's Allowance," Labour Economics, Elsevier, vol. 16(3), pages 239-250, June.
    9. Annette Bergemann & Gerard J. Van Den Berg, 2008. "Active Labor Market Policy Effects for Women in Europe - A Survey," Annals of Economics and Statistics, GENES, issue 91-92, pages 385-408.
    10. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
    11. Marike Knoef & Jan C. van Ours, 2016. "How to stimulate single mothers on welfare to find a job: evidence from a policy experiment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 1025-1061, October.
    12. David Card & Jochen Kluve & Andrea Weber, 2018. "What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 894-931.
    13. Dolton, Peter & Smith, Jeffrey A., 2011. "The Impact of the UK New Deal for Lone Parents on Benefit Receipt," IZA Discussion Papers 5491, Institute of Labor Economics (IZA).
    14. Gerard J. van den Berg & Annette H. Bergemann & Marco Caliendo, 2009. "The Effect of Active Labor Market Programs on Not-Yet Treated Unemployed Individuals," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 606-616, 04-05.
    15. Marco Francesconi & Wilbert van der Klaauw, 2007. "The Socioeconomic Consequences of "In-Work" Benefit Reform for British Lone Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
    16. Moffitt, Robert, 2008. "Welfare reform: the US experience," Working Paper Series 2008:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    17. Brewer, Mike & Duncan, Alan & Shephard, Andrew & Suarez, Maria Jose, 2006. "Did working families' tax credit work? The impact of in-work support on labour supply in Great Britain," Labour Economics, Elsevier, vol. 13(6), pages 699-720, December.
    18. Ashenfelter, Orley & Ashmore, David & Deschenes, Olivier, 2005. "Do unemployment insurance recipients actively seek work? Evidence from randomized trials in four U.S. States," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 53-75.
    19. Alessio Brown & Johannes Koettl, 2015. "Active labor market programs - employment gain or fiscal drain?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-36, December.
    20. Card, David & Sullivan, Daniel G, 1988. "Measuring the Effect of Subsidized Training Programs on Movements in and out of Employment," Econometrica, Econometric Society, vol. 56(3), pages 497-530, May.
    21. Richard Blundell & Andrew Shephard, 2012. "Employment, Hours of Work and the Optimal Taxation of Low-Income Families," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(2), pages 481-510.
    22. Eichhorst, Werner & Konle-Seidl, Regina, 2008. "Contingent Convergence: A Comparative Analysis of Activation Policies," IZA Discussion Papers 3905, Institute of Labor Economics (IZA).
    23. Immervoll, Herwig, 2012. "Activation policies in OECD countries : an overview of current approaches," Social Protection Discussion Papers and Notes 71903, The World Bank.
    24. Paul Gregg & Susan Harkness & Sarah Smith, 2009. "Welfare Reform and Lone Parents in the UK," Economic Journal, Royal Economic Society, vol. 119(535), pages 38-65, February.
    25. Reiso, Katrine Holm, 2014. "The Effect of Welfare Reforms on Benefit Substitution," Discussion Paper Series in Economics 22/2014, Norwegian School of Economics, Department of Economics.
    26. Michael Rosholm & Michael Svarer, 2008. "The Threat Effect of Active Labour Market Programmes," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(2), pages 385-401, June.
    27. McVicar, Duncan, 2008. "Job search monitoring intensity, unemployment exit and job entry: Quasi-experimental evidence from the UK," Labour Economics, Elsevier, vol. 15(6), pages 1451-1468, December.
    28. Rafael Lalive & Jan C. Van Ours & Josef Zweimüller, 2008. "The Impact of Active Labour Market Programmes on The Duration of Unemployment in Switzerland," Economic Journal, Royal Economic Society, vol. 118(525), pages 235-257, January.
    29. Bolvig, Iben & Jensen, Peter & Rosholm, Michael, 2003. "The Employment Effects of Active Social Policy," IZA Discussion Papers 736, Institute of Labor Economics (IZA).
    30. Petrongolo, Barbara, 2009. "The long-term effects of job search requirements: Evidence from the UK JSA reform," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1234-1253, December.
    31. Lammers, Marloes & Bloemen, Hans & Hochguertel, Stefan, 2013. "Job search requirements for older unemployed: Transitions to employment, early retirement and disability benefits," European Economic Review, Elsevier, vol. 58(C), pages 31-57.
    32. Richard Blundell & Claire Crawford & Wenchao Jin, 2014. "What Can Wages and Employment Tell Us about the UK's Productivity Puzzle?," Economic Journal, Royal Economic Society, vol. 0(576), pages 377-407, May.
    33. Eichhorst, Werner & Konle-Seidl, Regina, 2016. "Evaluating Labour Market Policy," IZA Discussion Papers 9966, Institute of Labor Economics (IZA).
    34. Herwig Immervoll & Stefano Scarpetta, 2012. "Activation and employment support policies in OECD countries. An overview of current approaches," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-20, December.
    35. Bruce D. Meyer, 1995. "Lessons from the U.S. Unemployment Insurance Experiments," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 91-131, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Liming & Avendano, Mauricio, 2023. "Lone parents' employment policy and adolescents’ socioemotional development: Quasi-experimental evidence from a UK reform," Social Science & Medicine, Elsevier, vol. 320(C).
    2. Suziedelyte, Agne & Zhu, Anna, 2021. "The intergenerational impact of reduced generosity in the social safety net," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 1-24.
    3. Daniel Schaefer & Carl Singleton, 2017. "Real Wages and Hours in the Great Recession: Evidence from Firms and their Entry-Level Jobs," CESifo Working Paper Series 6766, CESifo.
    4. Simpson, Julija & Bambra, Clare & Brown, Heather, 2021. "Do Changes in Employment and Hours Worked Contribute to a Decreasing in the Mental Health of Single Mothers during a Period of Welfare Reform in the UK? A Longitudinal Analysis (2009-2019)," IZA Discussion Papers 14968, Institute of Labor Economics (IZA).
    5. Dahl, Espen S. & Hernaes, Øystein, 2022. "Making Activation for Young Welfare Recipients Mandatory," IZA Discussion Papers 15170, Institute of Labor Economics (IZA).
    6. Brewer, Mike & Cattan, Sarah & Crawford, Claire & Rabe, Birgitta, 2016. "Free Childcare and Parents' Labour Supply: Is More Better?," IZA Discussion Papers 10415, Institute of Labor Economics (IZA).
    7. Brewer, Mike & Cattan, Sarah & Crawford, Claire & Rabe, Birgitta, 2022. "Does more free childcare help parents work more?," Labour Economics, Elsevier, vol. 74(C).
    8. De Brouwer, Octave & Leduc, Elisabeth & Tojerow, Ilan, 2023. "The consequences of job search monitoring for the long-term unemployed: Disability instead of employment?," Journal of Public Economics, Elsevier, vol. 224(C).
    9. Hernæs, Øystein M., 2020. "Distributional effects of welfare reform for young adults: An unconditional quantile regression approach," Labour Economics, Elsevier, vol. 65(C).
    10. Paul Redmond & Seamus McGuinness & Claire Keane, 2023. "The impact of one-parent family payment reforms on the labour market outcomes of lone parents," Oxford Economic Papers, Oxford University Press, vol. 75(2), pages 346-370.
    11. Pascale Bourquin & Tom Waters, 2022. "Jobs and job quality between the eve of the Great Recession and the eve of COVID‐19," Fiscal Studies, John Wiley & Sons, vol. 43(1), pages 63-78, March.
    12. Espen S. Dahl & Øystein Hernaes, 2023. "Making activation for young welfare recipients mandatory," LABOUR, CEIS, vol. 37(1), pages 96-121, March.
    13. Simpson, Julija & Wildman, John & Bambra, Clare & Brown, Heather, 2024. "Longer Working Hours and Maternal Mental Health: A Comparison of Single vs. Partnered Mothers," IZA Discussion Papers 16875, Institute of Labor Economics (IZA).
    14. Pascale Bourquin & Jonathan Cribb & Tom Waters & Xiaowei Xu, 2019. "Why has in-work poverty risen in Britain?," IFS Working Papers W19/12, Institute for Fiscal Studies.
    15. Martin, John P., 2016. "Whither Activation Policies? Reflections for the Future," IZA Policy Papers 114, Institute of Labor Economics (IZA).
    16. Morescalchi Andrea & Paruolo Paolo, 2020. "Too Much Stick for the Carrot? Job Search Requirements and Search Behaviour of Unemployment Benefit Claimants," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-21, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arni, Patrick & Schiprowski, Amelie, 2019. "Job search requirements, effort provision and labor market outcomes," Journal of Public Economics, Elsevier, vol. 169(C), pages 65-88.
    2. Petrongolo, Barbara, 2009. "The long-term effects of job search requirements: Evidence from the UK JSA reform," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1234-1253, December.
    3. Bart Cockx & Muriel Dejemeppe & Andrey Launov & Bruno Van der Linden, 2018. "Imperfect Monitoring of Job Search: Structural Estimation and Policy Design," Journal of Labor Economics, University of Chicago Press, vol. 36(1), pages 75-120.
    4. Morescalchi Andrea & Paruolo Paolo, 2020. "Too Much Stick for the Carrot? Job Search Requirements and Search Behaviour of Unemployment Benefit Claimants," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-21, January.
    5. Arni, Patrick & Schiprowski, Amelie, 2016. "Strengthening Enforcement in Unemployment Insurance: A Natural Experiment," IZA Discussion Papers 10353, Institute of Labor Economics (IZA).
    6. Ulrike Huemer & Rainer Eppel & Marion Kogler & Helmut Mahringer & Lukas Schmoigl & David Pichler, 2021. "Effektivität von Instrumenten der aktiven Arbeitsmarktpolitik in unterschiedlichen Konjunkturphasen," WIFO Studies, WIFO, number 67250.
    7. Manning, Alan, 2009. "You can't always get what you want: The impact of the UK Jobseeker's Allowance," Labour Economics, Elsevier, vol. 16(3), pages 239-250, June.
    8. Micklewright, John & Nagy, Gyula, 2010. "The effect of monitoring unemployment insurance recipients on unemployment duration: Evidence from a field experiment," Labour Economics, Elsevier, vol. 17(1), pages 180-187, January.
    9. Laporšek Suzana & Vodopivec Milan & Vodopivec Matija, 2022. "Activation programs for unemployment benefit recipients in Slovenia," Review of Economic Perspectives, Sciendo, vol. 22(2), pages 75-95, June.
    10. Jonas Maibom & Michael Rosholm & Michael Svarer, 2017. "Experimental Evidence on the Effects of Early Meetings and Activation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 541-570, July.
    11. Cockx, Bart & Dejemeppe, Muriel, 2012. "Monitoring job search effort: An evaluation based on a regression discontinuity design," Labour Economics, Elsevier, vol. 19(5), pages 729-737.
    12. Chiara Natalie Focacci, 2020. "“You reap what you sow”: Do active labour market policies always increase job security? Evidence from the Youth Guarantee," European Journal of Law and Economics, Springer, vol. 49(3), pages 373-429, June.
    13. Bart Cockx & Stijn Baert, 2015. "Contracting Out Mandatory Counselling and Training for Long-Term Unemployed. Private For-Profit or Non-Profit, or Keep it Public?," CESifo Working Paper Series 5587, CESifo.
    14. Hullegie, P.G.J., 2012. "Essays on health and labor economics," Other publications TiSEM dcc68fc9-7af1-4ba9-8f90-6, Tilburg University, School of Economics and Management.
    15. Seamus McGuinness & Philip J. O’Connell & Elish Kelly, 2019. "Carrots, No Stick, No Driver: The Employment Impact of Job Search Assistance in a Regime with Minimal Monitoring and Sanctions," Journal of Labor Research, Springer, vol. 40(2), pages 151-180, June.
    16. Cockx, Bart & Ghirelli, Corinna & Van der Linden, Bruno, 2014. "Is it socially efficient to impose job search requirements on unemployed benefit claimants with hyperbolic preferences?," Journal of Public Economics, Elsevier, vol. 113(C), pages 80-95.
    17. Løken, Katrine V. & Lommerud, Kjell Erik & Holm Reiso, Katrine, 2018. "Single mothers and their children: Evaluating a work-encouraging welfare reform," Journal of Public Economics, Elsevier, vol. 167(C), pages 1-20.
    18. Bernhard Boockmann & Tobias Brändle, 2019. "Coaching, Counseling, Case‐Working: Do They Help the Older Unemployed Out of Benefit Receipt and Back Into the Labor Market?," German Economic Review, Verein für Socialpolitik, vol. 20(4), pages 436-468, November.
    19. Paul Redmond & Seamus McGuinness & Claire Keane, 2023. "The impact of one-parent family payment reforms on the labour market outcomes of lone parents," Oxford Economic Papers, Oxford University Press, vol. 75(2), pages 346-370.
    20. Cockx, Bart & Ghirelli, Corinna & Van der Linden, Bruno, 2013. "Monitoring Job Search Effort with Hyperbolic Time Preferences and Non-Compliance: A Welfare Analysis," IZA Discussion Papers 7266, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Single parents; Active labour market policy; Work search conditionalities; Disability benefits;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:51:y:2018:i:c:p:63-85. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/labeco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.