We study the extension of an EITC for single mothers in the Netherlands to mothers with a youngest child 12 to 15 years old. This reform increased net income for the treatment group by 5%. Using both DD and RD we show that this reform had a negligible effect on labour participation, with tight confidence intervals around zero. Our results are at odds with a number of related studies. This is likely to be due to their use of single women without children as the control group, which in our case is an invalid control group.JEL codes: C21, H24, J22 2 The former government (Rutte-I) had plans to reverse the policy change of 2002, to reduce the budget deficit (CPB, 2010), but for the moment these plans are on hold.3 Furthermore, we also consider a 'difference-in-discontinuity' analysis, where we allow for a potential pre-reform discontinuity (although we are unaware of a reason to expect a pre-reform discontinuity at the discontinuity we consider). 4 The point estimate of the DD analysis is -0.2%-points with a 95% confidence interval [-1.4,0.9].The point estimate of the RD analysis is -0.4 (where we have reversed the sign of the coefficient since we are measuring the change in the participation rate of single mothers that do not qualify for the subsidy relative to single mothers that do qualify for the subsidy, see below), with a 95% confidence interval [-2.3,1.6].
This paper describes the construction of a model of the Dutch health care sector. It discusses the behaviour of patients, general practitioners, medical specialists and hospital managers. It also analyses the various ways the actors interact, such as general practitioners supplying the services demanded by patients, specialists dispatching referrals made by general practitioners or hospital managers boosting output to match an increasing amount of specialist services. Numerical simulations illustrate the various mechanisms in the model.
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