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This Briefing Note provides the first published estimates of the labour market impact of the new tax credits, and the tax and benefit reforms that preceded them, on families with children. Specifically, this note examines all personal tax and benefit reforms introduced between April 2000 and April 2003. We use a structural model of labour supply to examine how these changes affect both the participation rate (the proportion of parents who would like to work at a given hourly wage) and the average weekly hours of work. We examine how the impact varies between lone mothers and adults in couples with children, and how it varies with both the number of children and the age of the youngest child in the family.
Authors
![Mike Brewer](/sites/default/files/styles/square_desktop/public/2022-07/Mike%20Brewer.jpg?itok=3JdYlHV1)
Mike Brewer
![Richard Blundell](/sites/default/files/styles/square_desktop/public/2024-03/Richard%20Blundell%20Head.jpg?itok=ow7e9OkA)
CPP Co-Director
Richard is Co-Director of the Centre for the Microeconomic Analysis of Public Policy (CPP) and Senior Research Fellow at IFS.
![Andrew Shephard](/sites/default/files/styles/square_desktop/public/2022-07/Andrew%20Shephard.jpg?itok=J0anEps8)
Research Associate University of Pennsylvania
Andrew is a Research Associate at the IFS and an Associate Professor of Economics at the University of Pennsylvania.
Report details
- DOI
- 10.1920/bn.ifs.2004.0052
- Publisher
- IFS
Suggested citation
R, Blundell and M, Brewer and A, Shephard. (2004). The impact of tax and benefit changes between April 2000 and April 2003 on parents' labour supply. London: IFS. Available at: https://ifs.org.uk/publications/impact-tax-and-benefit-changes-between-april-2000-and-april-2003-parents-labour-supply (accessed: 30 June 2024).
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