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Did Canadian welfare reform work? The effects of new reform strategies on social assistance participation

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  • Nathan Berg
  • Todd Gabel

Abstract

This paper measures the extent to which declines in social assistance (SA) participation were associated with novel and aggressive reforms referred to as new reform strategies: work requirements, diversion, earning exemptions and time limits. Controlling for province-specific benefit levels, eligibility requirements, GDP growth, labour market conditions and demographics, SA participation rates were more than one percentage point lower (equivalent to a 13% decline) in provinces with new reforms. Work requirements with strong sanctions had the sharpest negative associations. New reform strategies explain at least 10% of observed declines in SA participation, twice that of benefit levels and eligibility requirements.

Suggested Citation

  • Nathan Berg & Todd Gabel, 2015. "Did Canadian welfare reform work? The effects of new reform strategies on social assistance participation," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 494-528, May.
    • Handle: RePEc:cje:issued:v:48:y:2015:i:2:p:494-528
    DOI: 10.1111/caje.12134
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    Cited by:

    1. Akhtaruzzaman, Muhammad & Berg, Nathan & Lien, Donald, 2017. "Confucius Institutes and FDI flows from China to Africa," China Economic Review, Elsevier, vol. 44(C), pages 241-252.
    2. Cairo, Sofie & Mahlstedt, Robert, 2023. "The disparate effects of information provision: A field experiment on the work incentives of social welfare," Journal of Public Economics, Elsevier, vol. 226(C).
    3. Cairo, Sofie & Mahlstedt, Robert, 2021. "Transparency of the Welfare System and Labor Market Outcomes of Unemployed Workers," IZA Discussion Papers 14940, IZA Network @ LISER.
    4. Chris Riddell, 2020. "Welfare to work and subjective well‐being: Evidence from a randomized control trial," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(1), pages 83-107, February.
    5. Nathan Berg & Yuki Watanabe, 2020. "Conservation of behavioral diversity: on nudging, paternalism-induced monoculture, and the social value of heterogeneous beliefs and behavior," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 19(1), pages 103-120, June.
    6. Green, David A. & Riddell, William Craig, 2017. "Is there a tradeoff between ethnic diversity and redistribution? The case of income assistance in Canada," CLEF Working Paper Series 10, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    7. Masayoshi Hayashi, 2017. "Do Central Grants Affect Welfare Caseloads? Evidence from Public Assistance in Japan," CIRJE F-Series CIRJE-F-1064, CIRJE, Faculty of Economics, University of Tokyo.

    More about this item

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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