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Welfare Participation and Labour Market Behaviour in Canada

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  • Louis N. Christofides
  • Thanasis Stengos
  • Robert Swidinsky

Abstract

In this paper, bivariate probit estimation procedures and nonindependent selectivity adjustments are employed to investigate the determinants of the joint welfare participation-labor supply decisions made by single males, single females, lone fathers, and lone mothers, using data from the 1988-89 Labour Market Activity Survey. The bivariate probit results indicate that the welfare and labor-force participation decisions are not independent. Welfare program parameters, however, such as the basic allowance and the program tax rate, generally do not appear to influence the welfare participation, labor force participation, or hours worked decisions. Rather, these decisions are more strongly associated with personal characteristics and labor market conditions.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 30 (1997)
Issue (Month): 3 (August)
Pages: 595-621

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Handle: RePEc:cje:issued:v:30:y:1997:i:3:p:595-621

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Cited by:
  1. Nathan Berg & Todd Gabel, 2014. "New Reform Strategies and Welfare Participation in Canada," Working Papers 1402, University of Otago, Department of Economics, revised Mar 2014.
  2. Louis Christofides, 1999. "Social Assistance and Labour Supply," CESifo Working Paper Series 225, CESifo Group Munich.
  3. Jennifer Stewart & Martin D. Dooley, 1999. "The Duration of Spells on Welfare and Off Welfare Among Lone Mothers in Ontario," Canadian Public Policy, University of Toronto Press, vol. 25(s1), pages 47-72, November.
  4. Stephen Whelan, 2010. "The take-up of means-tested income support," Empirical Economics, Springer, vol. 39(3), pages 847-875, December.
  5. Irvine, Ian & Finnie, Ross & Sceviour, Roger, 2004. "La dynamique de l'aide sociale au Canada : le role des attributs individuels et des variables economiques et politiques," Direction des etudes analytiques : documents de recherche 2004231f, Statistics Canada, Direction des etudes analytiques.
  6. Nathan Berg & Todd Gabel, 2013. "Effects of New Welfare Reform Strategies on Welfare Participation: Microdata Estimates from Canada," Working Papers 1304, University of Otago, Department of Economics, revised Feb 2013.
  7. Sandra Dandie & Joseph Mercante, 2007. "Australian labour supply elasticities: Comparison and critical review," Treasury Working Papers 2007-04, Treasury, Australian Government, revised Oct 2007.
  8. Ronald D. Kneebone & Katherine G. White, 2009. "Fiscal Retrenchment and Social Assistance in Canada," Canadian Public Policy, University of Toronto Press, vol. 35(1), pages 21-40, March.
  9. Irvine, Ian & Finnie, Ross & Sceviour, Roger, 2005. "Social Assistance Use in Canada: National and Provincial Trends in Incidence, Entry and Exit," Analytical Studies Branch Research Paper Series 2005245e, Statistics Canada, Analytical Studies Branch.
  10. Hou, Feng & Picot, Garnett & Myers, Karen & Myles, John, 2006. "Why Did Employment and Earnings Rise Among Lone Mothers During the 1980s and 1990s?," Analytical Studies Branch Research Paper Series 2006282e, Statistics Canada, Analytical Studies Branch.
  11. Ross Finnie & Ian Irvine, 2008. "The Welfare Enigma: Explaining the Dramatic Decline in Canadians' Use of Social Assistance, 1993-2005," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 267, June.
  12. Martin D. Dooley, . "The Evolution of Welfare Participation Among Canadian Lone Mothers From 1973 ­ 1991," Canadian International Labour Network Working Papers 17, McMaster University.
  13. Irvine, Ian & Finnie, Ross & Sceviour, Roger, 2004. "Welfare Dynamics in Canada: The Role of Individual Attributes and Economic-policy Variables," Analytical Studies Branch Research Paper Series 2004231e, Statistics Canada, Analytical Studies Branch.
  14. Terracol, Antoine, 2009. "Guaranteed minimum income and unemployment duration in France," Labour Economics, Elsevier, vol. 16(2), pages 171-182, April.

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