Welfare Reform: Consequences for the Children

Fuente: arXiv
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Main Authors: Simonsen, Marianne, Skipper, Lars, Smith, Jeffrey A.
Format: Preprint
Published: 2025
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author Simonsen, Marianne
Skipper, Lars
Smith, Jeffrey A.
author_facet Simonsen, Marianne
Skipper, Lars
Smith, Jeffrey A.
contents This paper uses register-based data to analyze the consequences of a recent major Danish welfare reform for children's academic performance and well-being. In addition to work requirements, the reform brought about considerable reductions in welfare transfers. We implement a comparative event study that contrasts outcomes for individuals on welfare at the time of reform announcement before and after the implementation of the reform with the parallel development in outcomes for an uncontaminated comparison group, namely those on welfare exactly one year prior. Our analysis documents that mothers' propensity to receive welfare decreased somewhat as a consequence of the reform, just as we observe a small increase in hours worked. At the same time, we do not detect negative effects on short-run child academic performance. We do find small negative effects on children's self-reported school well-being and document substantial upticks in reports to child protective services for children exposed to the reform.
format Preprint
id arxiv_https___arxiv_org_abs_2506_03927
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Welfare Reform: Consequences for the Children
Simonsen, Marianne
Skipper, Lars
Smith, Jeffrey A.
General Economics
Economics
This paper uses register-based data to analyze the consequences of a recent major Danish welfare reform for children's academic performance and well-being. In addition to work requirements, the reform brought about considerable reductions in welfare transfers. We implement a comparative event study that contrasts outcomes for individuals on welfare at the time of reform announcement before and after the implementation of the reform with the parallel development in outcomes for an uncontaminated comparison group, namely those on welfare exactly one year prior. Our analysis documents that mothers' propensity to receive welfare decreased somewhat as a consequence of the reform, just as we observe a small increase in hours worked. At the same time, we do not detect negative effects on short-run child academic performance. We do find small negative effects on children's self-reported school well-being and document substantial upticks in reports to child protective services for children exposed to the reform.
title Welfare Reform: Consequences for the Children
topic General Economics
Economics
url https://arxiv.org/abs/2506.03927