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ISER Working Paper Series 2017-01

Lone parents, time-limited in-work credits and the dynamics of work and welfare

Authors

Publication date

27 Jan 2017

Abstract

Time-limited in-work credits are cheaper, and more targeted, than conventional in-work credits, but are thought to have small to zero long-term impacts. We study two time-limited in-work credits in- troduced in the mid-2000s in the UK and find they reduced welfare participation and increased employment. Both policies increased job retention once recipients were in work and boosted employment even after the payments were stopped. Conditioning on hours of work was important. Paying a credit to those working 16+ hours a week only increased part-time work, while conditioning on full-time work reduced part-time work and increased full-time work.

Subjects

Labour Market, Public Policy, and Welfare Benefits

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Related publications

  1. Lone parents, time-limited in-work credits and the dynamics of work and welfare

    Mike Brewer and Jonathan Cribb

    1. Labour Market
    2. Public Policy
    3. Welfare Benefits

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