IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/23984.html
   My bibliography  Save this paper

The impact of policy change on job retention and advancement

Author

Listed:
  • Dickins, Richard
  • McKnight, Abigail

Abstract

This paper examines the impact of the Working Families Tax Credit (WFTC) on employment retention and advancement. The WFTC, which replaced Family Credit in October 1999, supplemented earnings of low paid workers living in low income families. It was designed to increase the financial incentive for low skilled workers to find and remain in work and in the process boost their family income. It finds evidence that WFTC increased employment retention among male recipients. WFTC does not appear to have increased wage growth compared with Family Credit but there is no evidence that employers were able to use the more generous WFTC to keep wage growth down.

Suggested Citation

  • Dickins, Richard & McKnight, Abigail, 2008. "The impact of policy change on job retention and advancement," LSE Research Online Documents on Economics 23984, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:23984
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/23984/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Francesconi, Marco & van der Klaauw, Wilbert, 2004. "The consequences of ‘in-work’ benefit reform in Britain: new evidence from panel data," ISER Working Paper Series 2004-13, Institute for Social and Economic Research.
    2. Leigh, Andrew, 2007. "Earned Income Tax Credits and Labor Supply: New Evidence From a British Natural Experiment," National Tax Journal, National Tax Association;National Tax Journal, vol. 60(2), pages 205-224, June.
    3. Paul Gregg & Susan Harkness & Stephen Machin, 1999. "Poor kids: trends in child poverty in Britain, 1968-96," Fiscal Studies, Institute for Fiscal Studies, vol. 20(2), pages 163-187, June.
    4. Reamonn Lydon & Ian Walker, 2005. "Welfare to work, wages and wage growth," Fiscal Studies, Institute for Fiscal Studies, vol. 26(3), pages 335-370, September.
    5. Richard Dickens & Paul Gregg & Jonathan Wadsworth (ed.), 2003. "The Labour Market Under New Labour," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59845-4, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dickins, Richard & McKnight, Abigail, 2008. "The impact of policy change on job retention and advancement," LSE Research Online Documents on Economics 47490, London School of Economics and Political Science, LSE Library.
    2. repec:cep:sticas:/134 is not listed on IDEAS
    3. Richard Dickens & Abigail McKnight, 2008. "The Impact of Policy Change on Job Retention and Advancement," CEP Occasional Papers 23, Centre for Economic Performance, LSE.
    4. Paul Gregg & Susan Harkness & Sarah Smith, 2009. "Welfare Reform and Lone Parents in the UK," Economic Journal, Royal Economic Society, vol. 119(535), pages 38-65, February.
    5. Abigail Mcknight & T. Tsang, 2013. "GINI Country Report: Growing Inequalities and their Impacts in the United Kingdom," GINI Country Reports united_kingdom, AIAS, Amsterdam Institute for Advanced Labour Studies.
    6. Arnaud Chevalier & Colm Harmon & Vincent O’ Sullivan & Ian Walker, 2013. "The impact of parental income and education on the schooling of their children," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-22, December.
    7. Marco Francesconi & Wilbert van der Klaauw, 2007. "The Socioeconomic Consequences of "In-Work" Benefit Reform for British Lone Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
    8. Blundell, Richard & Francesconi, Marco & van der Klaauw, Wilbert, 2011. "Anatomy of Welfare Reform Evaluation: Announcement and Implementation Effects," IZA Discussion Papers 6050, Institute of Labor Economics (IZA).
    9. Carlo J Morelli & Paul T. Seaman, 2010. "Devolution as a Policy Crucible: The Case of Universal Free School Meals," Poverty & Public Policy, John Wiley & Sons, vol. 2(1), pages 139-161, January.
    10. Morelli, Carlo & Seaman, Paul, 2009. "Devolution & Entrenched Household Poverty: Is Scotland less mobile?," SIRE Discussion Papers 2009-06, Scottish Institute for Research in Economics (SIRE).
    11. Alan Manning & Barbara Petrongolo, 2005. "The Part-Time Pay Penalty," CEP Discussion Papers dp0679, Centre for Economic Performance, LSE.
    12. Richard Dickens & Abigail McKnight, 2008. "Assimilation of Migrants into the British Labour Market," CASE Papers case133, Centre for Analysis of Social Exclusion, LSE.
    13. Giulia Faggio & Stephen Nickell, 2007. "Patterns of Work Across the OECD," Economic Journal, Royal Economic Society, vol. 117(521), pages 416-440, June.
    14. repec:cep:sticas:/126 is not listed on IDEAS
    15. Michal Myck & Howard Reed, 2006. "Tax and Benefit Reforms in a Model of Labour Market Transitions," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 208-239.
    16. Lefebvre, Pierre & Merrigan, Philip & Verstraete, Matthieu, 2009. "Dynamic labour supply effects of childcare subsidies: Evidence from a Canadian natural experiment on low-fee universal child care," Labour Economics, Elsevier, vol. 16(5), pages 490-502, October.
    17. Stephen Gibbons & Anne Green & Paul Gregg & Stephen Machin, 2005. "Is Britain Pulling Apart? Area Disparities in Employment, Education and Crime," The Centre for Market and Public Organisation 05/120, The Centre for Market and Public Organisation, University of Bristol, UK.
    18. Chiara Daniela Pronzato, 2015. "Fighting Lone Mothers’ Poverty Through In-Work Benefits: Methodological Issues and Policy Suggestions," CESifo Economic Studies, CESifo Group, vol. 61(1), pages 95-122.
    19. Ghazala Azmat, 2006. "The impact of tax credits on labour supply," Economics Working Papers 979, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2009.
    20. Jane Waldfogel, 2007. "Welfare Reforms and Child Well-Being in the US and UK," CASE Papers case126, Centre for Analysis of Social Exclusion, LSE.
    21. Cinzia Rienzo, 2017. "Real wages, wage inequality and the regional cost-of-living in the UK," Empirical Economics, Springer, vol. 52(4), pages 1309-1335, June.
    22. Mcknight, Abigail, 2015. "The Coalition's record on employment: policy, spending and outcomes 2010-2015," LSE Research Online Documents on Economics 103984, London School of Economics and Political Science, LSE Library.

    More about this item

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:23984. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.