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Labour supply
The increased adoption of means-tested benefits and tax credits in the UK and elsewhere has refocused employment policy on creating incentives for lower-skilled individuals to gain and retain employment. This has been the subject of increased attention in our research.

There are three main areas where further development is planned. First, labour supply decisions within the family. This area is particularly relevant given the growing importance of in-work benefits and childcare subsidies. Second, incentives in the tax and welfare system for employment retention and earnings enhancement once in the labour market. This is closely allied to the issue of wage progression and our research on human capital accumulation. Third, labour supply decisions for older workers and the complex interactions between early retirement incentives in pension systems, incapacity benefit rules and working opportunities for older people.

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Year: 578 publications
01 May 2011
In this paper we propose a systematic way of examining the importance of the extensive and the intensive margins of labor supply in order to explain the overall movements in total hours of work over time.
15 April 2011
We develop an empirical search-matching model with productivity shocks so as to analyze policy interventions in a labour market with heterogeneous agents.
14 April 2011
W11/06
Pierre Brochu and David A. Green
We find that higher minimum wages are associated with significantly lower hiring and layoff rates.
06 April 2011
On Monday the Government published its long advertised Green Paper on state pension reform. Much press speculation has suggested that this would lead to a flat rate pension of £140 a week for all new pensioners from 2015. But the commitments that the Government have made not to increase public spending on pensions and to honour pension rights that have already been accrued means that introducing such a pension will not be possible on anything like this timetable.
29 March 2011
Costas Meghir and Luigi Pistaferri
We discuss recent developments in the literature that studies how the dynamics of earnings and wages affect consumption choices over the life cycle.
10 March 2011
The final report of Lord Hutton's Independent Public Service Pensions Commission has been published today. The proposed reforms would improve the structure of public service pensions considerably and some elements would certainly lead to some public sector workers receiving substantially less generous pensions. But the overall generosity of the schemes, and therefore the cost to the taxpayer, will depend on key decisions left for the Government to make.
02 March 2011
This presentation was delivered at an ONS labour market statistics conference.
14 February 2011
S. Behncke
This paper investigates the effects of retirement on various health outcomes.
07 February 2011
W11/02
We use a unique dataset to construct measures of lifetime earnings and examine how these relate to financial resources in retirement.
02 February 2011
These slides were delivered at the IFS Green Budget 2011.
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Impact on Society
Past research into pension reform has contributed to evidence given to government on public service pensions.
Reform of the complex French state pension system was informed by recommendations by IFS researchers.
Changes to the benefit system recommended by IFS researchers have made working less than 16 hours a week more attractive to benefit recipients.
The Mirrlees Review shows the importance IFS attaches to high quality empirical evidence in the design of tax and benefit system.
Our ERA analysis contributed to the evaluation literature and informed the Government about the validity of the experimental findings.
IFS evaluated the Pathways to Work programme. This work proved key to the policy debate about how to get disability benefit claimants in work.
Proposals by IFS researchers to simplify the benefit system and strengthen the incentives for low-skilled adults to work have attracted the attention of Iain Duncan Smith, Secretary of State for Work and Pensions.
IFS researchers found that the In-Work Credit encouraged lone parents to leave benefit more quickly but did not increase work retention.
IFS researchers present and discuss new research on retirement saving with a group of business leaders and policy makers.
IFS researchers develop a model of the Mexican tax system that will be used by the Mexican Government analysts.