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The Interaction of UI and Welfare, and the Dynamics of Welfare Participation of Single Parents

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Author Info
Bernard Fortin
Guy Lacroix
Jean-François Thibault

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Abstract

The main goal of this paper is to analyze the impact of the unemployment insurance (UI) program on the rates of entry into and exit from welfare by single-parent households in Quebec. The database we used comes from Quebec welfare records and comprises over 11,180 single parent households, most of which (92 percent) are headed by a woman. Our results show that tightening the conditions of eligibility to UI causes a reduction of exits from welfare, especially for the older group, and an increase in re-entries. Similarly, a cut in the UI replacement rate raises the rate of re-entry into welfare. Our results indicate that cuts in the UI program may partially explain the increase in the welfare participation of lone mothers observed recently.

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File URL: http://economics.ca/cgi/jab?journal=cpp&view=v25s1/CPPv25s1p115.pdf
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Publisher Info
Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 25 (1999)
Issue (Month): s1 (November)
Pages: 115-132
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Handle: RePEc:cpp:issued:v:25:y:1999:i:s1:p:115-132

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Blank, Rebecca M., 1989. "Analyzing the length of welfare spells," Journal of Public Economics, Elsevier, vol. 39(3), pages 245-273, August. [Downloadable!] (restricted)
  2. Dolton, Peter J & van der Klaauw, Wilbert, 1995. "Leaving Teaching in the UK: A Duration Analysis," Economic Journal, Royal Economic Society, vol. 105(429), pages 431-44, March. [Downloadable!] (restricted)
  3. Duclos, J.Y. & Fortin, B. & Lacroix, G. & Roberge, H., 1998. "The Dynamics of Welfare Participation in Quebec," Papers 9817, Laval - Recherche en Politique Economique.
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  4. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July. [Downloadable!] (restricted)
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  5. Fortin, Pierre, 1989. "How 'natural' is Canada's high unemployment rate?," European Economic Review, Elsevier, vol. 33(1), pages 89-110, January. [Downloadable!] (restricted)
  6. Katz, Lawrence F. & Meyer, Bruce D., 1990. "The impact of the potential duration of unemployment benefits on the duration of unemployment," Journal of Public Economics, Elsevier, vol. 41(1), pages 45-72, February. [Downloadable!] (restricted)
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  7. Hanoch, Giora & Honig, Marjorie, 1978. "The labor supply curve under income maintenance programs," Journal of Public Economics, Elsevier, vol. 9(1), pages 1-16, February. [Downloadable!] (restricted)
  8. O'Neill, June A & Bassi, Laurie J & Wolf, Douglas A, 1987. "The Duration of Welfare Spells," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 241-48, May. [Downloadable!] (restricted)
  9. Anderson, Patricia M, 1992. "Time-Varying Effects of Recall Expectation, a Reemployment Bonus, and Job Counseling on Unemployment Durations," Journal of Labor Economics, University of Chicago Press, vol. 10(1), pages 99-115, January. [Downloadable!] (restricted)
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Cited by:
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  1. Luis Ayala & César Pérez, . "Macroeconomic Conditions, Institutional Factors And Demographic Structure: What Causes Welfare Caseloads?," Working Papers 2-03, Instituto de Estudios Fiscales. [Downloadable!]
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  2. Rebecca N. Warburton & William P. Warburton, 2004. "Canada Needs Better Data for Evidence-Based Policy: Inconsistencies Between Administrative and Survey Data on Welfare Dependence and Education," Canadian Public Policy, University of Toronto Press, vol. 30(3), pages 241-256, September. [Downloadable!] (restricted)
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