Journal
LABOUR ECONOMICS
Volume 13, Issue 6, Pages 721-746Publisher
ELSEVIER
DOI: 10.1016/j.labeco.2005.10.002
Keywords
child poverty; family expenditure; welfare reform; difference-in-difference
Categories
Funding
- Economic and Social Research Council [RES-343-28-3001] Funding Source: researchfish
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In this paper, we provide evidence on the question of how the UK government's welfare reforms since 1998 have affected the material well-being of children in low-income families. We examine changes in expenditure patterns and ownership of durable goods for low- and higher-income families between the pre-reform period (1995-1998) and the post-reform period (2000-2003), using data from the Family Expenditure Survey. The methodological approach is a difference-in-difference-in-difference analysis that exploits the fact that age variation in the reforms favoured low-income families over higher income ones and families with children age under I I over those with older children. We find that low-income families with children are catching up to more affluent families, in their expenditures and their possession of durable goods. Moreover, expenditures on child-related items are increasing faster than expenditures on other items. (c) 2005 Elsevier B.V. All rights reserved.
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