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Welfare Reforms and Consumption among Single Mother Households: Evidence from Canadian Provinces

Author

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  • Matthew Brzozowski

Abstract

This paper evaluates the impact of the 1995­1998 Ontario welfare reforms on the consumption levels of single mothers. I compare changes in after-tax income and in total expenditure among Ontario single mothers to those among three distinct segments of the Canadian population: single mothers in Quebec and British Columbia, single women with no children in Ontario, and married couples with children in Ontario. The comparison with demographically identical groups under different provincial administrations, and the implementation of propensity score matching of difference-in-difference estimates, sets my approach apart fr om similar research conducted using US data. The results indicate an initial decrease in the relative consumption levels among Ontario single mothers. This negative policy impact is not present in the longterm results.

Suggested Citation

  • Matthew Brzozowski, 2007. "Welfare Reforms and Consumption among Single Mother Households: Evidence from Canadian Provinces," Canadian Public Policy, University of Toronto Press, vol. 33(2), pages 227-250, June.
    • Handle: RePEc:cpp:issued:v:33:y:2007:i:2:p:227-250
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    Cited by:

    1. LAURA BERGER‐THOMSON & ELAINE CHUNG & REBECCA McKIBBIN, 2010. "Estimating Marginal Propensities to Consume in Australia Using Micro Data," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 49-60, September.
    2. Nezih Guner & John Knowles, 2009. "Why is the rate of single-parenthood lower in Canada than in the U.S.? A dynamic equilibrium analysis of welfare policies," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 56-89, February.
    3. Aviad Tur-Sinai, 2020. "The effect of terror and economic sector in early career years on future career path," Empirical Economics, Springer, vol. 59(5), pages 2153-2184, November.
    4. Anindya Sen & Hideki Ariizumi, 2013. "Teen families, welfare transfers, and the minimum wage: evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 46(1), pages 338-360, February.
    5. Neri, Andrea & Rondinelli, Concetta & Scoccianti, Filippo, 2017. "Household spending out of a tax rebate: Italian “€80 tax bonus”," Working Paper Series 2099, European Central Bank.
    6. Matthew Brzozowski & Thomas F. Crossley, 2011. "Viewpoint: Measuring the well-being of the poor with income or consumption: a Canadian perspective," Canadian Journal of Economics, Canadian Economics Association, vol. 44(1), pages 88-106, February.
    7. Andrea Neri & Concetta Rondinelli & Filippo Scoccianti, 2017. "Household spending out of a tax rebate: Italian ��80 tax bonus�," Questioni di Economia e Finanza (Occasional Papers) 379, Bank of Italy, Economic Research and International Relations Area.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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