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Welfare Reform and the Labour Supply of Lone Parents in Australia: A Natural Experiment Approach
Author(s) -
Doiron Denise J.
Publication year - 2004
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2004.00170.x
Subject(s) - welfare , labour supply , demographic economics , welfare reform , economics , matching (statistics) , labour economics , propensity score matching , sample (material) , natural experiment , work (physics) , medicine , mechanical engineering , chemistry , pathology , chromatography , engineering , market economy
Large shifts in the labour supply of lone parents in Australia were observed between 1986 and 1990. Changes in the observed characteristics of lone parents explain only a small portion of these shifts. Propensity score matching and difference‐in‐differences are used to estimate the effects of the substantial policy shifts implemented in 1987. Control groups are constructed from the sample of married mothers. Results suggest that the policy reforms caused a substantial increase in the employment of lone parents while causing a reduction in the hours of work among the workers.