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Unintended consequences of welfare reform for children with single parents: A theoretical analysis

Resource Type: Reports & Papers
Author(s): Francesconi, Marco; Rainer, Helmut; Klaauw, Wilbert van der
Date Issued: September, 2015
Description: This paper formulates a model to examine the effects of changes in tax-benefit policy on the behavior of divorced parents and the well-being of children in single-parent households. Noncustodial parents choose the level of a child support payment to transfer to custodians. These, in turn, decide over child good expenditures and the allocation of time between market work and parenting. Our main finding shows that welfare policies that subsidize childcare expenditures or reduce withdrawal rates, which are most certainly intended to improve the conditions of working single parents and their children, could actually have the reverse effect. (author abstract)
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Journal Title: Review of Economics of the Household
Volume Number: 13
Issue Number: 3
Page Range: 709-733
Topics: Parents & Families > Parent/Family Practices and Structure > Family Structure

Policies > Economic & Social Policies > Tax Policies
ISSN: 1569-5239 Paper
1573-7152 Online
Peer Reviewed: yes
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