From Welfare to Work: Evaluating a Tax and Benefit Reform Targeted at Single Mothers in Sweden

.  In this paper we evaluate a hypothetical tax and benefit reform to increase the working hours and to decrease welfare participation of single mothers in Sweden. We formulate and estimate simultaneously a structural static model of labor supply and welfare participation. The results suggest that l...

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Bibliographic Details
Published in:Labour (Rome, Italy) Italy), 2007-09, Vol.21 (3), p.443-471
Main Authors: Flood, Lennart, Wahlberg, Roger, Pylkkänen, Elina
Format: Article
Language:English
Subjects:
Fiscal policy
Households
Job search
Labor Supply
Labour policy
Labour relations
Low Income Groups
Mothers
One-parent families
Reform
Reforms
Single Mothers
Social policy
Studies
Sweden
Welfare
Welfare Recipients
Welfare Reform
Work
Work organization
Working Hours
Working mothers
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Summary:.  In this paper we evaluate a hypothetical tax and benefit reform to increase the working hours and to decrease welfare participation of single mothers in Sweden. We formulate and estimate simultaneously a structural static model of labor supply and welfare participation. The results suggest that labor supply among single mother households in Sweden is quite elastic, and that there is self‐selection into welfare. We also find that the proposed reform would generate welfare gains for virtually everyone in the sample, benefit low‐income households, and would at the same time generate a small revenue surplus.
ISSN:1121-7081
1467-9914
DOI:10.1111/j.1467-9914.2007.00386.x