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The Evolution of Welfare Participation Among Canadian Lone Mothers From 1973 ­ 1991

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Martin D. Dooley

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Abstract

The objective of this paper is to analyse changes in the welfare participation of Canadian lone mothers between 1973 and 1991. Lone mothers under age 35 do show an increasing reliance on SA income accompanied by stagnant wages and declining levels of market work and earnings. In contrast, lone mothers age 35 and over exhibit a declining reliance on SA income accompanied by rising levels of market work, wages and earnings income. Estimates of a simple economic­demographic probit model of welfare participation are both consistent with theoretical expectations and capable of accounting for a large portion of the very different observed trends for older and younger lone mothers. Much of the declining welfare use among older lone mothers can be explained by decreasing family size, increasing education and market wages which grew at the same rate as welfare benefits. Much of the rising welfare use among younger lone mothers can be explained by a decline in wages relative to welfare benefits accompanied by a mixed pattern of demographic change for this age group. Among younger lone mothers, modest declines in family size and increases in schooling were offset by a large increase in the proportion never married.

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File URL: http://labour.ciln.mcmaster.ca/papers/cilnwp17.pdf
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Paper provided by McMaster University in its series Canadian International Labour Network Working Papers with number 17.

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Length: 33 pages
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Handle: RePEc:mcm:cilnwp:17

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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. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March. [Downloadable!] (restricted)
  2. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  3. David Card & Philip Robins, 1996. "Do Financial Incentives Encourage Welfare Recipients to Work? Early Findings from the Canadian Self Sufficiency Project," Working Papers 738, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  4. Martin D. Dooley, 1994. "Women, Children and Poverty in Canada," Canadian Public Policy, University of Toronto Press, vol. 20(4), pages 430-443, December. [Downloadable!] (restricted)
  5. Louis N. Christofides & Thanasis Stengos & Robert Swidinsky, 1997. "Welfare Participation and Labour Market Behaviour in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 595-621, August. [Downloadable!] (restricted)
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  6. Saul D. Hoffman & E. Michael Foster, 1997. "AFDC Benefits and Nonmarital Births to Young Women," JCPR Working Papers 3, Northwestern University/University of Chicago Joint Center for Poverty Research.
  7. Michael Charette & Ronald Meng, 1994. "The Determinants of Welfare Participation of Female Heads of Household in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 27(2), pages 290-306, May. [Downloadable!] (restricted)
  8. Allen, Douglas W, 1993. "Welfare and the Family: The Canadian Experience," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages S201-23, January. [Downloadable!] (restricted)
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  1. Myles, John F. & Hou, Feng & Picot, Garnett & Myers, Karen, 2008. "The Demographic Foundations of Rising Employment and Earnings Among Single Mothers in Canada and the United States, 1980 to 2000," Analytical Studies Branch Research Paper Series 2008305e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  2. Martin Dooley and Ross Finnie, 2006. "Welfare Policy, Language Group and the Duration of Lone Motherhood Spells," Department of Economics Working Papers 2006-03, McMaster University. [Downloadable!]
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