Journal Article

Work incentives and 'in-work' benefit reforms: a review

R Blundell

in Oxford Review of Economic Policy

Published on behalf of The Oxford Review of Economic Policy Ltd

Volume 16, issue 1, pages 27-44
Published in print March 2000 | ISSN: 0266-903X
Published online March 2000 | e-ISSN: 1460-2121 | DOI: http://dx.doi.org/10.1093/oxrep/16.1.27
Work incentives and 'in-work' benefit reforms: a review

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  • Economic Development and Growth
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In-work benefit reforms seek to reduce poverty and promote employment among low-income families. Using evidence from similar policies in the USA and Canada, this paper reviews the likely impact of recent UK reforms. The focus is on employment and hours. In particular, the paper examines the effectiveness of the new Working Families Tax Credit in the UK in increasing employment among low-income families. It presents evidence suggesting modest increases in employment for single parents and workerless married couples with children, but with some offsetting reductions in employment in two-earner couples with young children.

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Subjects: Economic Development and Growth ; Public Economics ; Political Economy ; Public Policy

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