The employment impact of recent labour market reforms
Richard Blundell, Mike Brewer, Alan Duncan, Howard Reed and Andrew Shephard.
CPE Commentary C2. February 2004. [download ]

Summary
This report (prepared by the Institute for Fiscal Studies under a commission by the Bank of England) provides a comprehensive evaluation of the impact of recent labour market programs, principally the Working Families’ Tax Credit (WFTC), the New Tax Credits and the minimum wage. Three different evaluation techniques (difference-in-difference methods, ex ante structural simulation of behavioural responses, and aggregate labour market modelling).

We find that lone parents’ employment rose substantially (by up to 3.7 percentage points overall) in response to the WFTC. Results among couples were less clear cut, with these reforms typically encouraging one earner households at the expense of two earner households.

Gillian Paull, Jayne Taylor and Alan Duncan.
CPE Commentary C1. March 2002. [HTML link ]

Summary

This report (prepared by the Institute for Fiscal Studies under a commission by the Nuffield Foundation) presents a comprehensive picture of the current work and childcare choices of mothers in Britain, using a quantitative analysis of the most recently available survey data. Among the questions addressed are: Are mothers constrained in their ability to work? How and at what cost is childcare provided for children of working mothers? How do the availability and quality of childcare vary across different regions of the country? What impact does the price of childcare have on childcare use and the employment of mothers? How much does it influence the quality of care? What effect would the working families’ tax credit and its generous credit for childcare expenses have on childcare use?