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Earnings Supplementation for British Columbia: Pros, Cons, and Structure

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  • Kesselman, Jonathan
  • Petit, Gillian

Abstract

This paper provides background on key issues for the reform of earnings supplement (ES) programs in B.C.: motivation, policy history, and structure of existing and potential provisions. ES programs offer benefits that are linked to an individual’s earnings, as distinguished from programs that offer cash transfers that are unconditional on work or earnings. Thus, the motivations for the ES benefit structure are related to views about reciprocity, self-respect, and social participation and contribution. As a consequence, ES programs have garnered wide support across the political spectrum. The paper describes the ES benefit structure, its parameters, and its operational aspects. The federal Canada Workers Benefit (CWB) is the only ES program currently available for B.C. residents. Options for reform or enhancement of the CWB for B.C. workers are surveyed and assessed at a qualitative level: cost-free reconfiguration of the CWB, provincial top-ups to the CWB, and the institution of a B.C. scheme funded and operated by the province.

Suggested Citation

  • Kesselman, Jonathan & Petit, Gillian, 2020. "Earnings Supplementation for British Columbia: Pros, Cons, and Structure," MPRA Paper 105931, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:105931
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    References listed on IDEAS

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    1. Diane Whitmore Schanzenbach & Michael R. Strain, 2021. "Employment Effects of the Earned Income Tax Credit: Taking the Long View," Tax Policy and the Economy, University of Chicago Press, vol. 35(1), pages 87-129.
    2. Gillian Petit & Craig Scott & Blake Gallacher & Jennifer Zwicker & Lindsay Tedds, 2020. "Less Income for More Hours of Work: Barriers to Work for Social Assistance Recipients in B.C," SPP Briefing Papers, The School of Public Policy, University of Calgary, vol. 13(16), July.
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    4. Hilary W. Hoynes & Ankur J. Patel, 2018. "Effective Policy for Reducing Poverty and Inequality?: The Earned Income Tax Credit and the Distribution of Income," Journal of Human Resources, University of Wisconsin Press, vol. 53(4), pages 859-890.
    5. Raj Chetty & John N. Friedman & Emmanuel Saez, 2013. "Using Differences in Knowledge across Neighborhoods to Uncover the Impacts of the EITC on Earnings," American Economic Review, American Economic Association, vol. 103(7), pages 2683-2721, December.
    6. Petit, Gillian & Tedds, Lindsay M., 2020. "Overview of System of Income and Social Support Programs in British Columbia," MPRA Paper 105920, University Library of Munich, Germany.
    7. Leigh Andrew, 2010. "Who Benefits from the Earned Income Tax Credit? Incidence among Recipients, Coworkers and Firms," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-43, May.
    8. Robert A. Moffitt, 2003. "Means-Tested Transfer Programs in the United States," NBER Books, National Bureau of Economic Research, Inc, number moff03-1, May.
    9. Petit, Gillian & Kesselman, Jonathan, 2020. "Reforms to Earnings Supplement Programs in British Columbia: Making Work Pay for Low-Income Workers," MPRA Paper 105925, University Library of Munich, Germany.
    10. Petit, Gillian & Tedds, Lindsay M., 2020. "Interactions between income and social support programs in B.C," MPRA Paper 105927, University Library of Munich, Germany.
    11. Petit, Gillian & Tedds, Lindsay, 2020. "Poverty in British Columbia: Income Thresholds, Trends, Rates, and Depths of Poverty," MPRA Paper 104002, University Library of Munich, Germany.
    12. Moffitt, Robert A. (ed.), 2016. "Economics of Means-Tested Transfer Programs in the United States, Volume I," National Bureau of Economic Research Books, University of Chicago Press, number 9780226370477, December.
    13. Robert J. Van Der Veen, 1998. "Real Freedom versus Reciprocity: Competing Views on the Justice of Unconditional Basic Income," Political Studies, Political Studies Association, vol. 46(1), pages 140-163, March.
    14. Petit, Gillian & Tedds, Lindsay M., 2020. "Programs-Based Overview of Income and Social Support Programs for Working-Age Persons in British Columbia," MPRA Paper 105924, University Library of Munich, Germany.
    15. Jonathan R. Kesselman, 1993. "The Child Tax Benefit: Simple, Fair, Responsive?," Canadian Public Policy, University of Toronto Press, vol. 19(2), pages 109-132, June.
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    Cited by:

    1. Petit, Gillian & Kesselman, Jonathan, 2020. "Reforms to Earnings Supplement Programs in British Columbia: Making Work Pay for Low-Income Workers," MPRA Paper 105925, University Library of Munich, Germany.
    2. Green, David & Kesselman, Jonathan Rhys & Tedds, Lindsay M., 2021. "Covering All the Basics: Reforms for a More Just Society," MPRA Paper 105902, University Library of Munich, Germany.

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    More about this item

    Keywords

    earnings supplement; Canada Workers Benefit; working-poor; British Columbia;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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