Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80502
Authors: 
Pronzato, Chiara
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4375
Abstract: 
Lone mothers are overrepresented among poor people in many European countries. In 1998, in Norway, a welfare reform increased the amount of benefits and introduced working requirements. Using a quasi-experimental model, Mogstad and Pronzato (2012) find a positive effect of the reform on lone mothers' labour supply and a small reduction in poverty. Is the best result that policy makers could obtain in terms of poverty reduction? In this paper, I estimate a discrete choice model of earnings and welfare participation decisions, and use the behavioural estimates to derive the policy parameters which would have minimized poverty among lone mothers.
Subjects: 
lone mothers
in-work benefits
poverty
discrete choice models
comparison of methods
JEL: 
I38
J22
C25
Document Type: 
Working Paper

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