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Welfare Reforms and Consumption among Single Mother Households: Evidence from Canadian Provinces

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  • Matthew Brzozowski

Abstract

This paper evaluates the impact of the 1995­1998 Ontario welfare reforms on the consumption levels of single mothers. I compare changes in after-tax income and in total expenditure among Ontario single mothers to those among three distinct segments of the Canadian population: single mothers in Quebec and British Columbia, single women with no children in Ontario, and married couples with children in Ontario. The comparison with demographically identical groups under different provincial administrations, and the implementation of propensity score matching of difference-in-difference estimates, sets my approach apart fr om similar research conducted using US data. The results indicate an initial decrease in the relative consumption levels among Ontario single mothers. This negative policy impact is not present in the longterm results.

Suggested Citation

  • Matthew Brzozowski, 2007. "Welfare Reforms and Consumption among Single Mother Households: Evidence from Canadian Provinces," Canadian Public Policy, University of Toronto Press, vol. 33(2), pages 227-250, June.
    • Handle: RePEc:cpp:issued:v:33:y:2007:i:2:p:227-250
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    1. Fortin, Bernard & Lacroix, Guy & Drolet, Simon, 2004. "Welfare benefits and the duration of welfare spells: evidence from a natural experiment in Canada," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1495-1520, July.
    2. Martin D. Dooley & Stéphane Gascon & Pierre Lefebvre & Philip Merrigan, 2000. "Lone Female Headship and Welfare Policy in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 587-602.
    3. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    4. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, August.
    5. Lemieux, Thomas & Milligan, Kevin, 2008. "Incentive effects of social assistance: A regression discontinuity approach," Journal of Econometrics, Elsevier, vol. 142(2), pages 807-828, February.
    6. Kevin Milligan & Mark Stabile, 2004. "The Integration of Child Tax Credits and Welfare: Evidence from the National Child Benefit Program," NBER Working Papers 10968, National Bureau of Economic Research, Inc.
    7. Nicolas Beaulieu & Jean-Yves Duclos & Bernard Fortin & Manon Rouleau, 2005. "Intergenerational reliance on social assistance: Evidence from Canada," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(3), pages 539-562, September.
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    Cited by:

    1. Matthew Brzozowski & Thomas F. Crossley, 2011. "Viewpoint: Measuring the well‐being of the poor with income or consumption: a Canadian perspective," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(1), pages 88-106, February.
    2. Andrea Neri & Concetta Rondinelli & Filippo Scoccianti, 2017. "Household spending out of a tax rebate: Italian ��80 tax bonus�," Questioni di Economia e Finanza (Occasional Papers) 379, Bank of Italy, Economic Research and International Relations Area.
    3. Neri, Andrea & Rondinelli, Concetta & Scoccianti, Filippo, 2017. "Household spending out of a tax rebate: Italian “€80 tax bonus”," Working Paper Series 2099, European Central Bank.
    4. LAURA BERGER‐THOMSON & ELAINE CHUNG & REBECCA McKIBBIN, 2010. "Estimating Marginal Propensities to Consume in Australia Using Micro Data," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 49-60, September.
    5. Aviad Tur-Sinai, 2020. "The effect of terror and economic sector in early career years on future career path," Empirical Economics, Springer, vol. 59(5), pages 2153-2184, November.
    6. Nezih Guner & John Knowles, 2009. "Why is the rate of single‐parenthood lower in Canada than in the U.S.? A dynamic equilibrium analysis of welfare policies," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(1), pages 56-89, February.
    7. Anindya Sen & Hideki Ariizumi, 2013. "Teen families, welfare transfers, and the minimum wage: evidence from Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(1), pages 338-360, February.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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