Labor Market Effects of the Working Family Tax Credit on Single Mothers in the UK

Abstract

The Labor Market Effects of the Working Family Tax Credit on Single Mothers in the UK. Sofiana Sinani August 2022 Bibliographic note SINANI, Sofiana. The Labor Market Effects of the Working Family Tax Credit on Single Mothers in the UK. Prague 2022. Master thesis. Center for Economic Research and Graduate Education - Economics Institute, A joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences. Thesis supervisor: Andreas Menzel, Ph.D. Abstract The Working Family Tax Credit (WFTC) was introduced in the UK in 1999. This policy provided fi- nancial incentives for work to low-income parents with children (primarily single mothers). The parents received full credit if they worked 16 hours/week and the credit decreases with more hours of work. The credit increased marginally when the parent worked 30 hours/week to stimulate full-time work. The WFTC unambiguously made work attractive; however, the effect on labor hours for parents employed in pre-WFTC is unclear. In this thesis, I investigate the effect of the WFTC on single mothers' paid labor hours. I apply the quantile difference-in-difference approach and estimate the quantile treatment effects. This approach allows me to find the effect of the WFTC given the single mothers' paid labor hours in pre-WFTC. My results...

The Labor Market Effects of the Working Family Tax Credit on Single Mothers in the UK. Sofiana Sinani August 2022 Bibliographic note SINANI, Sofiana. The Labor Market Effects of the Working Family Tax Credit on Single Mothers in the UK. Prague 2022. Master thesis. Center for Economic Research and Graduate Education - Economics Institute, A joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences. Thesis supervisor: Andreas Menzel, Ph.D. Abstrakt Working Family Tax Credit (WFTC) byla sociální politika zavedená ve Spojeném Království v roce 1999. Tato politika vytvořila systém finančních pobídek pro rodiče s nízkými příjmy (hlavně matky samoživitelky). Pokud rodiče odpracovali alespoň 16 hodin za týden, obdrželi plný kredit. S rostoucím počtem odpracovaných hodin velikost získaného kreditu klesala, avšak skokově vrostla při odpracování 30 hodin za týden a následně znovu stejným tempem klesala. WFTC přiměla pracovat pouze ty rodiče, kteří před zavedením WFTC nepracovali. Vliv WTFC na počet odpracovaných hodin rodičů pracujících i před zavedením politiky je nejasný. V práci se zabývám vlivem WFTC na počet odpracovaných hodin matek samoživitelek. Využívám k tomu kvantilovou metodu rozdílu v rozdílech (dále...