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Incorporating Nonmarket Time Into Benefit-Cost Analyses of Social Programs: An Application to the Self-Sufficiency Project

Author

Listed:
  • Phillip K. Robins

    (Department of Economics, University of Miami)

  • David H. Greenberg

    (University of Maryland, Baltimore County)

Abstract

The Self-Sufficiency Project (SSP) was a social experiment conducted in two provinces in Canada during the 1990s that tested a generous financial incentive program for welfare recipients. A little-known subsidiary experiment, called SSP Plus, had a three-way design that tested the incremental effect of adding employment services to the generous financial incentive program. Employment services are viewed by many welfare analysts as an important component of an overall strategy for helping welfare recipients escape poverty and achieve stable employment. This paper presents the results of the SSP Plus experiment. Adding employment services encouraged more people to take up the earnings supplement, and it appeared to have long-term effects on full-time employment and welfare receipt. This might be because the services improved the jobs people obtained. Both earnings and wage rates were higher compared to earnings and wages without the services and the jobs held appeared to be more sustainable.

Suggested Citation

  • Phillip K. Robins & David H. Greenberg, 2006. "Incorporating Nonmarket Time Into Benefit-Cost Analyses of Social Programs: An Application to the Self-Sufficiency Project," Working Papers 0714, University of Miami, Department of Economics, revised Sep 2007.
    • Handle: RePEc:mia:wpaper:0714
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    References listed on IDEAS

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    1. Jeffrey Grogger, 2009. "Welfare Reform, Returns to Experience, and Wages: Using Reservation Wages to Account for Sample Selection Bias," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 490-502, August.
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    Cited by:

    1. Marios Michaelides & Peter R. Mueser & Jeffrey A. Smith, 2021. "Do Reemployment Programs For The Unemployed Work For Youth? Evidence From The Great Recession In The United States," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 162-185, January.
    2. Burt S. Barnow & Jeffrey Smith, 2015. "Employment and Training Programs," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 127-234, National Bureau of Economic Research, Inc.
    3. Pieter Gautier & Paul Muller & Bas van der Klaauw & Michael Rosholm & Michael Svarer, 2018. "Estimating Equilibrium Effects of Job Search Assistance," Journal of Labor Economics, University of Chicago Press, vol. 36(4), pages 1073-1125.
    4. Andrea Albanese & Bart Cockx & Yannick Thuy, 2020. "Working time reductions at the end of the career: Do they prolong the time spent in employment?," Empirical Economics, Springer, vol. 59(1), pages 99-141, July.
    5. Maibom, Jonas, 2021. "The Danish Labor Market Experiments: Methods and Findings," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2021(1), pages 1-21.
    6. Aidan R. Vining & David L. Weimer, 2013. "An assessment of important issues concerning the application of benefit–cost analysis to social policy," Chapters, in: Scott O. Farrow & Richard Zerbe, Jr. (ed.), Principles and Standards for Benefit–Cost Analysis, chapter 1, pages 25-62, Edward Elgar Publishing.
    7. Glenn P. Jenkins & Richard Sogah & Abdallah Othman & Mikhail Miklyaev & Çağay Coşkuner, 2023. "Estimation of the Economic Opportunity Cost of Labour: An Operational Guide for Ghana," Sustainability, MDPI, vol. 15(14), pages 1-21, July.
    8. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    9. Daniel Gubits & David Stapleton & Stephen Bell & Michelle Wood & Denise Hoffman & Sarah Croake & David R. Mann & Judy Geyer & David Greenberg & Austin Nichols & Andrew McGuirk & Meg Carroll & Utsav Ka, "undated". "BOND Implementation and Evaluation: Final Evaluation Report, Volume 1," Mathematica Policy Research Reports fac39cd85b944c528e7acbb5d, Mathematica Policy Research.
    10. Jonas Maibom, 2023. "The Welfare Effects Of Mandatory Reemployment Programs: Combining A Structural Model And Experimental Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(2), pages 607-640, May.
    11. Jeffrey Smith & Arthur Sweetman, 2016. "Viewpoint: Estimating the causal effects of policies and programs," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(3), pages 871-905, August.
    12. Mihic, Marko M. & Todorovic, Marija Lj. & Obradovic, Vladimir Lj., 2014. "Economic analysis of social services for the elderly in Serbia: Two sides of the same coin," Evaluation and Program Planning, Elsevier, vol. 45(C), pages 9-21.

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    More about this item

    Keywords

    benefit-cost analysis; social program evaluation; labor supply;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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