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Assessing the impact of a wage subsidy for single parents on social assistance

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  • Guy Lacroix
  • Dany Brouillette

Abstract

This paper studies the impact of a wage subsidy program aimed at long‐term social assistance recipients in Quebec. The program closely mimics the Self‐Sufficiency Project and was implemented for a trial period of one year in 2002.We focus on the labour market transitions of the targeted population starting one year before the implementation of the program and until the end of 2005. Our results show that the duration of spells off social assistance increased, while the duration of social assistance spells decreased slightly. The response to the program varies considerably with both observed and unobserved characteristics. Ce texte étudie l’impact d’un programme de subvention salariale visant les bénéficiaires d’aide sociale de longue durée au Québec. Le programme ressemble grandement au Projet de l’autosuffisance et a été mis en place pour une période d’essai d’un an en 2002. On se concentre sur les transitions sur le marché du travail de la population cible pour la période qui va d’un an avant la mise en place du programme jusqu’à la fin de 2005. Les résultats montrent que la durée des périodes hors de l’aide sociale a augmenté et que la durée de périodes où l’aide sociale est collectée a diminué légèrement. La réponse au programme varie grandement selon les caractéristiques observables et non‐observables.

Suggested Citation

  • Guy Lacroix & Dany Brouillette, 2011. "Assessing the impact of a wage subsidy for single parents on social assistance," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(4), pages 1195-1221, November.
  • Handle: RePEc:wly:canjec:v:44:y:2011:i:4:p:1195-1221
    DOI: 10.1111/j.1540-5982.2011.01672.x
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    References listed on IDEAS

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    Cited by:

    1. Rainer Eppel & Helmut Mahringer, 2013. "Do Wage Subsidies Work in Boosting Economic Inclusion? Evidence on Effect Heterogeneity in Austria," WIFO Working Papers 456, WIFO.
    2. Tue Gørgens & Dean Robert Hyslop, 2018. "The Specification of Dynamic Discrete-Time Two-State Panel Data Models," Econometrics, MDPI, Open Access Journal, vol. 7(1), pages 1-16, December.
    3. Nicholas-James Clavet & Jean-Yves Duclos & Guy Lacroix, 2013. "Fighting Poverty: Assessing the Effect of Guaranteed Minimum Income Proposals in Quebec," Canadian Public Policy, University of Toronto Press, vol. 39(4), pages 491-516, December.
    4. Rainer Eppel & Helmut Mahringer, 2012. "Do wage subsidies work in boosting economic inclusion? Evidence on e," EcoMod2012 4065, EcoMod.
    5. Fanny Moffette & Dorothée Boccanfuso & Patrick Richard & Luc Savard, 2013. "Estimating the Impact of the Québec’s Work Incentive Program on Labour Supply: An Ex Post Microsimulation Analysis," Cahiers de recherche 13-01, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.

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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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