Female Labor Supply, Human Capital and Welfare Reform

Richard W. Blundell, Monica Costa Dias, Costas Meghir, Jonathan Shaw
2015 Social Science Research Network  
We estimate a dynamic model of employment, human capital accumulation -including education, and savings for women in the UK, exploiting policy changes. We analyze both the incentive effects and the welfare implications of tax credits and income support programs and we account for their insurance value. We find important incentive effects on education choice and labor supply, with single mothers having the most elastic labor supply. Returns to experience increase with education, but experience
more » ... n, but experience only accumulates when in full-time employment. Finally, marginal increases in tax credits are preferred to equally costly income support or to tax cuts. Acknowledgements: We thanks four anonymous referees and the editor of this journal for helpful comments. This research has greatly benefited from discussions with
doi:10.2139/ssrn.2593877 fatcat:2pmbsuinkjdgvnsl3o3vy5y53a