Evaluating the labour supply response of single parents to the earned income tax credit in the Netherlands

Time: 2011, Tuesday September 27, 13.00-14.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

Presentation: Egbert Jongen (CPB)

Discussant: Pierre Koning (SZW/VU)

Language: English

Registration:  Please register by sending an email to seminars@cpb.nl.

Abstract subject: In this paper we study how financial incentives affect the labour supply of single parents. In 2002 the Dutch government relaxed the eligibility conditions of the earned income tax credit for single parents. We use this natural experiment to identify the labour supply response of single parents. We consider the effect on both the extensive (participation) and intensive (working hours) margin. We employ a number of different methods (e.g. differences-in-differences, regression-discontinuity) to infer the labour supply responses, and also present an extensive robustness analysis.

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