Making work pay: increasing labour supply of secondary earners in low income families with children

Kurowská, Anna; Myck, Michał; Wrohlich, Katharina

doi:10.5709/ce.1897-9254.234

Cited by 7 publications

(6 citation statements)

References 25 publications

(33 reference statements)

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“…An individual-based system generates stronger work incentives than a household-based one, as the latter does not give incentives to the second partner in the household to start working. This corresponds with earlier findings in the literature (see Bargain and Orsini, 2006; Kurowska et al, 2016; OECD, 2005).…”

Section: Resultssupporting

confidence: 93%

“…Also, Edmark et al (2016) focus on the employment impact of the Swedish IWB. Kurowska et al (2016) look at couples in Poland and propose a reform of the child tax credit through the introduction of a premium for double earners as a way to boost work incentives for second earners in a household. The impact on work incentives and poverty has been analysed for the Belgian IWB by Vandelannoote and Verbist (2019), comparing the actual system with a hypothetical stylized alternative.…”

Section: Labour Supply and Poverty Effects Of Iwbs: Insights From Thementioning

confidence: 99%

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The impact of in-work benefits on work incentives and poverty in four European countries

Vandelannoote

Verbist

2020

Journal of European Social Policy

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This article studies the impact of design characteristics of in-work benefits on labour supply and poverty in an international comparative setting, taking account of both first-order (without taking labour supply effects into account) and second-order effects (taking labour supply effects into account). We use the microsimulation model EUROMOD, which has been enriched with a structural discrete choice labour supply model to take account of labour supply reactions. The analysis is performed for four EU member states: Belgium, Italy, Poland and Sweden. The results show that design characteristics matter substantially, though the specific effects differ in magnitude across countries, indicating there is no one-size-fits-all solution. Throughout the analysis, numerous trade-offs are uncovered: not only between work incentives and poverty goals, but also within work incentives themselves. Taking account of behavioural reactions attenuates the impact on poverty outcomes, signalling the importance of bringing these effects into the empirical analysis.

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Section: Resultssupporting

confidence: 93%

Section: Labour Supply and Poverty Effects Of Iwbs: Insights From Thementioning

confidence: 99%

The impact of in-work benefits on work incentives and poverty in four European countries

Vandelannoote

Verbist

2020

Journal of European Social Policy

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“…In the work of B. Krimer [10] attention is focused upon the birth rateprocess of Ukrainian population and its relevance to the global process of demographic transition, specific features of the transformation of of Ukrainian population birth rateagainst the background of developed countries. The scientific works of N. Levchuk, L. Lisogor, E. Libanova, N. Kulik, O. Gladun aredevoted tothe relationship between the demographic quality of the population and the state of the national labor market; the works of A. Jakubowska and Z. Horváthová [11] dwell upon the interrelation between the health of the nation and the level of economic development; A. Kurowska et al [12] focuson the interrelation between social payments and occupation of the population; M. A. R. Estrada et al [13] emphasise the connection between unemployment and the size of wages. The collective monograph of the scientists of the Institute of Demography and Social Studies named after N.V. Ptuha of the National Academy of Sciences of Ukraine [14] considersthe demographic factors as the main determinants and prerequisites for the development of innovative employment, the main risks and threats have been identified, and recommendations for stimulating the development of this type of employment were developed.…”

Section: Literature Reviewmentioning

confidence: 99%

Perfecting of mathematical tools for forecasting the country development vectors on the basis of economic and demographic parameters system analysis

Provolotska¹,

Voloshyna²,

Нєізвєстна³

et al. 2019

PEN

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Under the conditions of activeglobe community activitiesaimed atsolving systemic problems in socioeconomic development the scientific and practical interest to the study of demo-economic processes applying mathematical tools increases objectively. This issue is especially actual for Ukraine, which hadeconomic conditions similar to many EU countriec, but got unsatisfactory results in the market economy functioning. Therefore, it is the task of paramount importance to establish cause-effect relationships between key demo-economic indicators of Ukraine and a country with a set of similar conditions of development (Poland) to adjust the strategic goals of sustainable development of Ukraine towards the meeting of EU demographic standards.The results of the analysis of the demo-economic situation in Ukraine and Poland in 2000-2017 revealed opposite trends in development. The human factor proved to be a strong component of development for both countries. The methodical approach to the assessment of the regional level of human development, based on the improvement of the mathematical tools for forecasting the development vectors of the country, is proposed. It is based on the grouping of country regions according to certain demographic parameters. Common and peculiarissues of human development indifferent regions of Ukraine are systematized upon the basis of clusterization. The established regularities of demo-economic development of entire Ukraine and regional features, the levers of state regulation of human potential formation of Poland were taken into account and laid as the basis of scientific and practical recommendations for adjusting the Strategy of Sustainable Development of Ukraine.

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“…26. Some researchers have proposed a "premium" for double-earner families as a design feature aimed at dealing with the trade-off (Luca et al, 2014;Kurowska et al, 2017). and Liebman, 1996;Eissa and Hoynes, 2004;Eissa and Hoynes, 2006;Meyer and Rosenbaum, 2001;Chetty et al, 2013).…”

Section: In-work Benefits As Make-work-pay Instrumentsmentioning

confidence: 99%

Making work pay in Croatia: An exante evaluation of two in-work benefits using miCROmod

Bezeredi¹,

Ledić²,

Rubil³

et al. 2018

IJM

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The aim of this paper is twofold. First, we introduce miCROmod, the most recent and comprehensive tax-benefit microsimulation model for Croatia. The focus of this paper is on its behavioural component, a structural labour supply model. Unlike in the standard discrete choice models, where labour supply follows from the agent's choice of work/leisure hours only, in our model, labour supply follows from the agent's choice from a set of jobs, which are characterised by work hours and a set of non-pecuniary job attributes that are unobserved by the researcher. In addition to the budget constraint, the agent faces constraints in the form of labour market opportunities. Second, we use the behavioural tax-benefit model to simulate the effects on the labour supply of couples and the income distribution of the introduction of in-work benefits-transfers conditional on working a certain number of hours. The following two benefits are considered: a family-based benefit imported from the UK, which is income-tested at the family level, and an individual-based benefit from Slovakia, which is income-tested at the individual level. According to the results, both are redistributive towards the needy. However, while the individual-based benefit increases the labour supply, the family-based benefit reduces it, contrary to its very purpose. An implication is that countries considering introducing an in-work benefit and that have most of their social transfers income-tested at the family level should be aware that family-level income-testing of in-work benefits might not improve work incentives, or might even harm them, especially if the benefits are generous.

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Making work pay: increasing labour supply of secondary earners in low income families with children

Cited by 7 publications

References 25 publications

The impact of in-work benefits on work incentives and poverty in four European countries

The impact of in-work benefits on work incentives and poverty in four European countries

Perfecting of mathematical tools for forecasting the country development vectors on the basis of economic and demographic parameters system analysis

Making work pay in Croatia: An exante evaluation of two in-work benefits using miCROmod

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