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Social assistance and labour supply

  • Louis N. Christofides

The longitudinal, 1988-89 LMAS makes it possible to study the interaction between social assistance and labour supply while allowing for substantial time dependence. Tobit equations for hours worked on and off social assistance, which allow for endogenous selection of social assistance status, are estimated by using FIML. Small, but statistically significant, effects for a social assistance benefit variable are obtained, particularly for females. A claw-back variable is not consistently useful. The wage rate has a consistently negative coefficient in the selection equations and is important in the Tobit equations. In this paper an attempt is made to reconcile results found in earlier literature.

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Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 33 (2000)
Issue (Month): 3 (August)
Pages: 715-741

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Handle: RePEc:cje:issued:v:33:y:2000:i:3:p:715-741
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  1. Blank, Rebecca M., 1985. "The impact of state economic differentials on household welfare and labor force behavior," Journal of Public Economics, Elsevier, vol. 28(1), pages 25-58, October.
  2. Martin D. Dooley & Stéphane Gascon & Pierre Lefebvre & Philip Merrigan, 2000. "Lone Female Headship and Welfare Policy in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 587-602.
  3. Michael Baker & Dwayne Benjamin & Andree Desaulniers Cegep & Mary Grant, 1995. "The Distribution of the Male/Female Earnings Differential, 1970-1990," Canadian Journal of Economics, Canadian Economics Association, vol. 28(3), pages 479-501, August.
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  5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
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  7. Garry F. Barrett & Michael I. Cragg, 1998. "An Untold Story: The Characteristics of Welfare Use in British Columbia," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 165-188, February.
  8. 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.
  9. Christofides, Louis N. & Stengos, Thanasis & Swidinsky, Robert, 1997. "On the calculation of marginal effects in the bivariate probit model," Economics Letters, Elsevier, vol. 54(3), pages 203-208, July.
  10. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December.
  11. 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.
  12. Bassi, Laurie J, 1990. "Employment and Welfare Participation among Women," Economic Inquiry, Western Economic Association International, vol. 28(2), pages 222-38, April.
  13. Bingley, Paul & Walker, Ian, 1997. "The Labour Supply, Unemployment and Participation of Lone Mothers in In-Work Transfer Programmes," Economic Journal, Royal Economic Society, vol. 107(444), pages 1375-90, September.
  14. 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.
  15. Paul Bingley & Gauthier Lanot & Elizabeth Symons & Ian Walker, 1995. "Child Support Reform and the Labor Supply of Lone Mothers in the United Kingdom," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 256-279.
  16. Nakamura, Alice & Nakamura, Masao, 1981. "A Comparison of the Labor Force Behavior of Married Women in the United States and Canada, with Special Attention to the Impact of Income Taxes," Econometrica, Econometric Society, vol. 49(2), pages 451-89, March.
  17. Christofides, Louis N, et al, 2003. "Recent Two-Stage Sample Selection Procedures with an Application to the Gender Wage Gap," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(3), pages 396-405, July.
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