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Less Income for More Hours of Work: Barriers to Work for Social Assistance Recipients in B.C

Author

Listed:
  • Gillian Petit

    (University of Calgary)

  • Craig Scott

    (University of Calgary)

  • Blake Gallacher

    (University of Calgary)

  • Jennifer Zwicker

    (University of Calgary)

  • Lindsay Tedds

    (University of Calgary)

Abstract

Individuals accept additional paid work, in terms of salary increase or more hours, with the expectation they will be financially better off than before. Unfortunately, for recipients of Income Assistance in the province of British Columbia, additional hours of employment or an increase in wages, such as an increase in minimum wage, in some circumstances may actually take money out of their pocket. This is due to the design of Income Assistance and its unintended interactions with other income and social support programs and the tax system. In this paper, we illustrate cases where B.C. residents receiving Disability Assistance or Temporary Assistance (the two main programs that comprise Income Assistance in B.C.) have less after-tax income after working additional hours of employment.

Suggested Citation

  • 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.
  • Handle: RePEc:clh:briefi:v:13:y:2020:i:16
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    References listed on IDEAS

    as
    1. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
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