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Understanding the mechanisms of in-work benefits: Can they improve employment retention among lone parents?
Welfare reforms have sought to increase employment among lone parents, but entering work does not always reduce poverty. Instead, what is required is retention: sustained employment rather than cycling in and out of work. However, little is known about how policies can encourage retention. This project will fill this knowledge gap by investigating the impact of two recent welfare-to-work policies (In-Work Credit and the Employment Retention and Advancement Demonstration) on short- and medium-run employment outcomes. Previous evaluations of these policies have examined their impact on the rates at which lone parents enter work, but have not looked at the their impact on how long lone parents stay in employment. This project aims to address the latter question by making use of sophisticated econometric methods and newly-available data on lone parents. We will also synthesise the evidence on these policies in order to learn which in-work benefits - and which specific features of them - are the most likely to foster job retention among lone parents.

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