.
Single mothers and incentives to work : The French
experience
L. Gonzalez,
Department of Economics and Business, Universitat Pompeu Fabra,
Barcelona, February, 32 p.,
(2005).
Résumé - Summary
This paper analyzes the effect of the 1998 reform of the French single parents
allowance on the labor supply of single mothers with very young children. The
reform aimed at encouraging participation by allowing eligible single parents to
accumulate benefits and labor earnings for a limited period of time. Using data
from the French Employment Survey, the analysis shows that single mothers
affected by the reform had experienced a significant increase in their
employment rate four years after the reform was implemented. During the same
period, the employment rate of married mothers with young children did not
experience a significant change, suggesting that at least part of the increase
was a consequence of the reform. These results provide some evidence that
benefit schedules that provide financial incentives to work can have significant
effects in getting single moms back to work, even in the presence of very young
children.