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Labor Supply, Human Capital Investment and Welfare Reform

Presentation

We estimate a dynamic model of female labor supply and human capital accumulation using unique panel data from the UK. We allow returns to work experience to differ by level of education and also allow for differential experience effects of part-time and full-time employment. We use the model to examine the gender gap in earnings and to assess the impact of reforms to tax credits and to welfare benefits on human capital investments and labor supply. We also use direct measures of training to explore the potential role of training in off-setting human capital depreciation and enhancing life-cycle earnings.

This presentation was given at the American Economics Association (AEA) and Allied Social Scientice Associations (ASSA) Annual Meeting in Philadelphia in January 2018.

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