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Welfare Participation and Labour Market Behaviour in Canada

Author

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  • Louis N. Christofides
  • Thanasis Stengos
  • Robert Swidinsky

Abstract

In this paper, bivariate probit estimation procedures and nonindependent selectivity adjustments are employed to investigate the determinants of the joint welfare participation-labor supply decisions made by single males, single females, lone fathers, and lone mothers, using data from the 1988-89 Labour Market Activity Survey. The bivariate probit results indicate that the welfare and labor-force participation decisions are not independent. Welfare program parameters, however, such as the basic allowance and the program tax rate, generally do not appear to influence the welfare participation, labor force participation, or hours worked decisions. Rather, these decisions are more strongly associated with personal characteristics and labor market conditions.

Suggested Citation

  • 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.
  • Handle: RePEc:cje:issued:v:30:y:1997:i:3:p:595-621
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    Cited by:

    1. Berg, Nathan & Gabel, Todd, 2010. "New Reform Strategies and Welfare Participation in Canada," MPRA Paper 26591, University Library of Munich, Germany.
    2. Sandra Dandie & Joseph Mercante, 2007. "Australian labour supply elasticities: Comparison and critical review," Treasury Working Papers 2007-04, The Treasury, Australian Government, revised Oct 2007.
    3. Jennifer Stewart & Martin D. Dooley, 1999. "The Duration of Spells on Welfare and Off Welfare Among Lone Mothers in Ontario," Canadian Public Policy, University of Toronto Press, vol. 25(s1), pages 47-72, November.
    4. Martin D. Dooley, 1999. "The Evolution of Welfare Participation Among Canadian Lone Mothers From 1973-1991," Canadian Journal of Economics, Canadian Economics Association, vol. 32(3), pages 589-612, May.
    5. Finnie, Ross & Irvine, Ian & Sceviour, Roger, 2004. "Welfare Dynamics in Canada: The Role of Individual Attributes and Economic-policy Variables," Analytical Studies Branch Research Paper Series 2004231e, Statistics Canada, Analytical Studies Branch.
    6. Louis N. Christofides, 2000. "Social assistance and labour supply," Canadian Journal of Economics, Canadian Economics Association, vol. 33(3), pages 715-741, August.
    7. Ross Finnie & Ian Irvine, 2008. "The Welfare Enigma: Explaining the Dramatic Decline in Canadians' Use of Social Assistance, 1993-2005," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 267, June.
    8. Hou, Feng & Myers, Karen & Myles, John & Picot, Garnett, 2006. "Why Did Employment and Earnings Rise Among Lone Mothers During the 1980s and 1990s?," Analytical Studies Branch Research Paper Series 2006282e, Statistics Canada, Analytical Studies Branch.
    9. Terracol, Antoine, 2009. "Guaranteed minimum income and unemployment duration in France," Labour Economics, Elsevier, vol. 16(2), pages 171-182, April.
    10. Stephen Whelan, 2010. "The Interaction between Income Support Programs," LABOUR, CEIS, vol. 24(4), pages 407-440, December.
    11. Finnie, Ross & Irvine, Ian & Sceviour, Roger, 2005. "Social Assistance Use in Canada: National and Provincial Trends in Incidence, Entry and Exit," Analytical Studies Branch Research Paper Series 2005245e, Statistics Canada, Analytical Studies Branch.
    12. Stephen Whelan, 2010. "The take-up of means-tested income support," Empirical Economics, Springer, vol. 39(3), pages 847-875, December.
    13. Ronald D. Kneebone & Katherine G. White, 2009. "Fiscal Retrenchment and Social Assistance in Canada," Canadian Public Policy, University of Toronto Press, vol. 35(1), pages 21-40, March.
    14. Nathan Berg & Todd Gabel, 2013. "Effects of New Welfare Reform Strategies on Welfare Participation: Microdata Estimates from Canada," Working Papers 1304, University of Otago, Department of Economics, revised Feb 2013.
    15. Finnie, Ross & Irvine, Ian & Sceviour, Roger, 2004. "La dynamique de l'aide sociale au Canada : le role des attributs individuels et des variables economiques et politiques," Direction des etudes analytiques : documents de recherche 2004231f, Statistics Canada, Direction des etudes analytiques.

    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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