Mothers' postdivorce earnings in the context of welfare policy change

Abstract

We examined in this study the implications of divorce for mothers' earnings, comparing the 1990s and the 2000s, and illuminating developments in welfare policy for single‐parent families over those two decades. After the welfare reform of 2003, the economic autonomy of single mothers, established through a combination of welfare state‐based benefits and paid labour, was delegitimised, with a turn toward the marketplace. Using a unique data set created for this research by merging Israeli census files for 1995–2008, annual administrative employment records from the National Insurance Institute and the Tax Authority, and data from the Civil Registry of Divorce, we found that most mothers tended to increase their income from paid labor following divorce. However, they did so significantly more prior to the welfare cuts than after the cuts. The results can inform policy discussions about how mothers' postdivorce earnings might be affected by welfare policy shifts.

Divorce and female labour force participation: Do women who expect an upcoming divorce increase their employment? Evidence from Flanders

“…Controlling for country effects, Van Damme et al (2009) found that European women, on average, modestly increase their employment after separation, but that country-specific institutions such as childcare facilities play an important role in promoting employment increase. Similar findings for Israel were reported by Herbst and Kaplan (2016). Raz-Yurovich (2011) showed that in Israel, women increased their levels of economic activity relative to when they were married, both by having more continuous and stable employment and by increasing the number of jobs they hold.…”

Coping Strategies of Migrant Ex-partners. Does Work, Family, or a New Partner Help You Through the Dark Times?

“…However, they are theoretically more able to increase employment as well as more attractive on the partner market, so they are likely to recover more quickly. Conversely, certain allowance penalties may interfere with the attempt to raise wages for those with weaker labour market positions (Herbst and Kaplan 2016). van Damme (2010) shows that class membership matters and that the income position of the ex-spouse also determines economic consequences after the break-up.…”

The Economically Responsible Single Mum who Sees to her Future: Welfare-to-work programmes and pension savings

“…The welfare reform of 2003 introduced cuts in income support and child support (income assurance) allowances (by approximately one third), as well as in child benefits (by approximately one half). Consequently, these allowances became less accessible, especially to many low-income workers, who also lost entitlement to a supplementary allowance to their low wages as a result of cuts in the 'disregard' (Herbst and Kaplan, 2016) -a benefit that allows low-wage employees to both work and receive an allowance (Gal and Doron, 2000). Cuts in the amount of the disregard affected the earning power of low-income workers, making it less lucrative to work, as many were no longer entitled to receive an allowance supplementing their wages.…”