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Welfare Reforms and Consumption Among Single Mother Households: Evidence From Canadian Provinces

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    Abstract

    This paper evaluates the impact of the 1995-1998 Ontario welfare reforms on the consumption among single mothers. Because welfare is a provincial responsibility in Canada, this study is able to consider the effects of the welfare reforms in Ontario, in comparison with other Canadian jurisdictions at the same time. By utilizing a difference in difference design I compare the changes in the consumption levels among Ontario single mothers to changes in the consumption levels among three distinct segments of Canadian population. The comparison with demographically identical groups under different provincial administrations and the implementation of difference in difference propensity score matching estimates sets my approach apart from previous similar work. The results indicate an initial decrease in the relative consumption levels among Ontario single mothers. This negative policy impact is not present in the long-term results.

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    File URL: http://economics.uwo.ca/epri/workingpapers_docs/wp2005/Brzozowski_10.pdf
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    Bibliographic Info

    Paper provided by University of Western Ontario, Economic Policy Research Institute in its series University of Western Ontario, Economic Policy Research Institute Working Papers with number 200510.

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    Date of creation: 2005
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    Handle: RePEc:uwo:epuwoc:200510

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    Postal: Economic Policy Research Institute, Social Science Centre, University of Western Ontario, London, Ontario, Canada N6A 5C2
    Phone: 519-661-2111 Ext.85244
    Web page: http://economics.uwo.ca/research/research_papers/epri_workingpapers.html

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    Keywords: welfare reform; difference in difference; lone mother;

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    1. Thomas Lemieux & Kevin Milligan, 2004. "Incentive Effects of Social Assistance: A Regression Discontinuity Approach," NBER Working Papers 10541, National Bureau of Economic Research, Inc.
    2. Pierre Lefebvre & Philip Merrigan & Martin Dooley, 1998. "Lone Female Headship and Welfare Policy in Canada," Department of Economics Working Papers 1998-02, McMaster University.
    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, 2005. "Universal Childcare, Maternal Labor Supply, and Family Well-Being," NBER Working Papers 11832, National Bureau of Economic Research, Inc.
    5. Nicolas Beaulieu & Jean-Yves Duclos & Bernard Fortin & Manon Rouleau, 2005. "Intergenerational reliance on social assistance: Evidence from Canada," Journal of Population Economics, Springer, vol. 18(3), pages 539-562, 09.
    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. 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.
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