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Partnership penalties and bonuses created by UK welfare programs
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Anderberg, Dan, Kondylis, Florence and Walker, Ian (2008) Partnership penalties and bonuses created by UK welfare programs. CESifo Economic Studies, Vol.54 (No.1). pp. 1-21. doi:10.1093/cesifo/ifn001
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Official URL: http://dx.doi.org/10.1093/cesifo/ifn001
Abstract
This article explores how the UK welfare benefit system subsidise or penalise couples for living together as partners. A couple is said to face a "partnership bonus" ("penalty") if they can receive more (less) benefits when living as partners than when living separately. Using data on existing couples from the Family Resources Survey 1995-2004 we provide a description of the distribution of partnership penalties and bonuses in the population. We also find that, while the 1999 Working Families' Tax Credit reform improved the financial incentives for partnership formation, this effect was largely undone by the subsequent 2003 Working Tax Credit reform.
| Item Type: | Journal Article | ||||
|---|---|---|---|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions | ||||
| Divisions: | Faculty of Social Sciences > Economics | ||||
| Journal or Publication Title: | CESifo Economic Studies | ||||
| Publisher: | Oxford University Press | ||||
| ISSN: | 1610-241X | ||||
| Official Date: | March 2008 | ||||
| Dates: |
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| Volume: | Vol.54 | ||||
| Number: | No.1 | ||||
| Number of Pages: | 21 | ||||
| Page Range: | pp. 1-21 | ||||
| DOI: | 10.1093/cesifo/ifn001 | ||||
| Status: | Not Peer Reviewed | ||||
| Publication Status: | Published | ||||
| Access rights to Published version: | Restricted or Subscription Access |
Data sourced from Thomson Reuters' Web of Knowledge
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