Working Paper: CEPR ID: DP13188
Authors: Kjell Erik Lommerud; Katrine Loken; Katrine H. Reiso
Abstract: Using rich administrative data from Norway, we evaluate a 1998 work-encouragingreform targeted at single parents. We especially focus on educational performance for the childrenof the involved single mothers. For these children, average school grades at age 16 droppedsignificantly by 0.7% of a standard deviation per additional year that their mothers were exposed tothe reform. Furthermore, we find that the reform affected single mothers by increasing their workinghours (and thereby reducing their time at home). We find no average effect on disposable income(mothers traded off reductions in benefits with increases in earnings). Thus, reduced parental timeat home seems to be the main mechanism for the observed moderate drop in children’s grades. Inline with this, we find that the reform increased the use of formal after-school care, and we find alarger reform effect for children of mothers with no informal network to help with child care.
Keywords: welfare reform; single mothers; child development; time investments
JEL Codes: I24; I38; J13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| increased working hours of single mothers (J22) | reduced time spent at home with their children (J12) |
| reduced time spent at home with their children (J12) | drop in average school grades of children of single mothers (I21) |
| increased use of formal afterschool care (I21) | drop in average school grades of children of single mothers (I21) |
| lack of informal childcare support (J13) | increased use of formal afterschool care (I21) |
| lack of informal childcare support (J13) | larger effects on children's educational outcomes (I24) |
| 1998 work-encouraging welfare reform (I38) | drop in average school grades of children of single mothers (I21) |
| 1998 work-encouraging welfare reform (I38) | increased use of formal afterschool care (I21) |