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The Effect of Reducing Welfare Access on Employment, Health, and Children's Long-Run Outcomes

Author

Listed:
  • Hicks, Jeffrey

    (University of Toronto)

  • Simard-Duplain, Gaëlle

    (Carleton University)

  • Green, David A.

    (University of British Columbia, Vancouver)

  • Warburton, William P.

    (Enterprise Economic Consulting)

Abstract

Welfare caseloads in North America halved following reforms in the 1990s and 2000s. We study how this shift affected families by linking Canadian welfare records to tax returns, medical spending, educational attainment, and crime data. We find substantial and heterogeneous employment responses that increased average income despite reduced transfers. We find zero effects on aggregate health expenditures, but mothers saw reduced preventative care and increased mental health treatment, consistent with the transition to employment elevating time pressure and stress. We find no effect on teenagers' education and criminal charges as young adults but do find evidence of intergenerational welfare transmission.

Suggested Citation

  • Hicks, Jeffrey & Simard-Duplain, Gaëlle & Green, David A. & Warburton, William P., 2023. "The Effect of Reducing Welfare Access on Employment, Health, and Children's Long-Run Outcomes," IZA Discussion Papers 16516, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16516
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    More about this item

    Keywords

    welfare; income; health;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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