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© Institute for Fiscal Studies In-work poverty: reflections Mike Brewer, Direct Tax and Welfare sector Institute for Fiscal Studies
In-work poverty: reflections Off message: In-work poverty in part due to high poverty line for couples –Single-earner couple on £20K with children aged 5 & 14 would be just above poverty line in 2007/8 –Such a person pays more in IT, NI and CT than receives in CB and CTC Children in in-work income poverty not the most deprived Choices vs constraints © Institute for Fiscal Studies
In-work poverty: reflections Off message: In-work poverty in part due to high poverty line for couples Children in in-work income poverty not the most deprived Choices vs constraints On message: Increasing mothers earnings may be possible Once out of work, can take time to get back © Institute for Fiscal Studies
Womens employment and children (1) © Institute for Fiscal Studies From Brewer and Paull, DWP RR 308 (based on BHPS data on births in 1990s and 1980s)
In-work poverty: reflections Off message: In-work poverty in part due to high poverty line for couples Children in in-work income poverty not the most deprived Choices vs constraints On message: Increasing mothers earnings may be possible Once out of work, can take time to get back Many mothers earn below their potential, having changed occupations post-childbirth Part-time jobs are concentrated in low-earning occupations: within occupations, part-time pay penalty is much smaller How? Mothers right-to-work? Influence part-time labour market? © Institute for Fiscal Studi es
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