The labour supply effects of a partial cash-out of in-kind transfers to single mothers

Table 4 Estimates of labour supply, unemployment and programme participation

Labour supply	LPT→NP		HPT→NP		FT→NP		Unemployment
Fixed
intercept	0.961	0.188	0.893	0.521	1.085	0.661	−1.040	0.228
renter	0.187	0.028	0.009	0.035	0.046	0.019	0.261	0.039
Age	−0.043	0.894	−0.269	0.717	−0.963	0.448	−1.805	1.107
age²	−0.126	1.168	0.261	0.897	1.425	0.662	−0.203	1.468
child 0-4	0.235	0.087	0.487	0.241	0.155	0.067	0.230	0.045
child 5-10	−0.075	0.037	0.046	0.034	0.077	0.036	0.087	0.030
widow	−0.147	0.035	0.027	0.040	0.060	0.030	−0.146	0.052
Unemp %							0.009	0.092
Random		${\bar{ψ}}^{p}$		${\tilde{ψ}}^{p}$
y ^other		4.474	0.211	1.049	0.049
y ^other - y ^FC		0.322	0.154	0.980	0.399
y ^other - y ^HB		0.008	0.025	0.598	0.400
y ^other - y ^CH		0.484	0.219	1.000	0.550
Covariance	LPT→NP		HPT→NP		FT→NP
ρ _LPT->NP			0.091	0.090	0.445	0.060
ρ _HPT->NP					−0.699	0.092
σ	1.000	-	0.560	0.560	0.232	0.196
Programme participation		FC		HB		CH
intercept		−1.055	1.205	−0.469	0.908	0.102	0.572
renter		0.448	0.231	-		0.626	0.115
age		−0.048	0.588	−0.317	0.439	0.019	0.297
age²		−0.042	0.777	−0.359	0.547	−0.347	0.414
child 0-4		−0.123	0.229	0.232	0.190	0.369	0.125
child 5-10		−0.082	0.156	0.092	0.117	0.089	0.105
widow		−1.451	0.664	0.252	0.135	−0.258	0.201
unemp. rate		0.565	0.181	0.459	0.131	−0.008	0.085
y ^p		0.069	0.036	0.279	0.090	0.074	0.005
Covariance
ρ _CH		−0.220	0.154	0.211	0.114
ρ _FC				0.435	0.123	−0.220	0.154

Source: Author estimates.
Note: Standard errors in italics. Log likelihood −6825. Number of observations is 4527. The labour supply and unemployment equations also include 8 region dummies and 7 dummies for consecutive pairs of benefit years. FC = Family Credit; HB = Housing Benefit; CH = child nutrition programme, Renter is not included in HB participation equation since HB is only available for renters. Age is defined as age/100 and age²/1000 and the unemployment rate, as a %, has been divided by 10. Note that all observations are single mothers so the omitted demographic profile is a never partnered or separated mother in owner occupied accommodation whose youngest child is 11–18.