CHILD-SUPPORT REFORM AND THE LABOR SUPPLY OF LONE MOTHERS IN THE UNITED-KINGDOM

The reform of child support arrangements, including their treatment by the welfare system, has been on the policy agenda in a number of coun tries in recent years. This paper simulates the impact of a reform tha t recently has been implemented in the United Kingdom. The analysis is based on estimates of a model of discrete choice labor supply for a s ample of U.K. lone mothers. We suggest that reform will induce a major reduction in welfare expenditures on lone mothers and a significant r ise in their labor force participation due to greater work incentives associated with the changes.