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Minimum Income Proposal in Québec

  • Nicholas-James Clavet
  • Jean-Yves Duclos
  • Guy Lacroix

In 2002 the Government of Quebec enacted Bill 112, known as An Act to Combat Poverty and Social Exclusion. It has also instituted an advisory committee whose role is to advise the government on policies that may have a direct or indirect impact on poverty and social exclusion. The Committee published a series of recommendations in 2009 that more or less amount to a Guaranteed Minimum Income scheme. We investigate the likely consequences of the recommendations on employment and income of all individuals residing in the Province of Quebec. We do this through the use of a behavioural micro-simulation model. Our results show that the proposed recommendations would have a large negative impact on hours of work and labor force participation – and mostly so among low-income workers. The recommendations would involve outlays in the order of $2.2 billion per year.

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Paper provided by CIRPEE in its series Cahiers de recherche with number 1129.

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Date of creation: 2011
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Handle: RePEc:lvl:lacicr:1129
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  1. M. Keane & R. Moffitt, . "A structural model of multiple welfare program participation and labor supply," Institute for Research on Poverty Discussion Papers 1080-96, University of Wisconsin Institute for Research on Poverty.
  2. Blundell, Richard, 2000. "Work Incentives and 'In-Work' Benefit Reforms: A Review," Oxford Review of Economic Policy, Oxford University Press, vol. 16(1), pages 27-44, Spring.
  3. Nicolas Beaulieu & Jean-Yves Duclos & Bernard Fortin & Manon Rouleau, 2005. "Intergenerational reliance on social assistance: Evidence from Canada," Journal of Population Economics, Springer, vol. 18(3), pages 539-562, 09.
  4. Nada Eissa & Hilary Hoynes, 2005. "Behavioral Responses to Taxes: Lessons from the EITC and Labor Supply," NBER Working Papers 11729, National Bureau of Economic Research, Inc.
  5. repec:fth:inseep:9315 is not listed on IDEAS
  6. Bruce D. Meyer, 2002. "Labor Supply at the Extensive and Intensive Margins: The EITC, Welfare, and Hours Worked," American Economic Review, American Economic Association, vol. 92(2), pages 373-379, May.
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