Did Working Families鈥� Tax Credit work?
The final evaluation of the impact of in-work support on parents鈥� labour supply and take-up behaviour in the UK.
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HM Revenue and Customs Working Paper 2: Did Working Families鈥� Tax Credit work? The final evaluation of the impact of in-work support on parents鈥� labour supply and take-up behaviour in the UK
This paper provides an evaluation of the impact of Working Families鈥� Tax Credit (WFTC) on the labour market behaviour of families with children. It makes use of data from all of WFTC鈥檚 42 month history (from October 1999 to March 2003), and therefore updates preliminary work first published in December 2003. Because entitlements to WFTC were increased in real terms at least every 12 months, this paper looks at both the immediate impact of replacing family credit with WFTC, and the cumulative impact of the changes to in-work support between April 1999 and March 2003.
This paper is part of the project called 鈥淓conometric Research: Impact of Working Families鈥� Tax Credit鈥� funded by the Inland Revenue.