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Intergenerational Effects of Disability Benefits - Evidence from Canadian Social Assistance Programs

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  • Chen, Kelly
  • Osberg, Lars
  • Phipps, Shelley

Abstract

Using Statistics Canada's National Longitudinal Survey of Children and Youth (NLSCY), this paper presents the first evidence on whether increased disability benefits reduce the negative consequences of parental disability on children’s well-being. Using a continuous difference-in-differences (DD) approach, we analyze whether gaps in developmental outcomes between children of disabled and non-disabled parents vary with the benefit level. We find strong evidence that higher parental disability benefits lead to improvements in children's cognitive functioning and non-cognitive development, as measured by math scores in standardized tests, and hyperactive and emotional anxiety symptoms. The effect is larger on children with a disabled mother than on those with a disabled father - which is consistent with the “good mother hypothesis†that a mother’s income is more likely than a father’s to be spent in ways that benefit the children.

Suggested Citation

  • Chen, Kelly & Osberg, Lars & Phipps, Shelley, 2013. "Intergenerational Effects of Disability Benefits - Evidence from Canadian Social Assistance Programs," CLSSRN working papers clsrn_admin-2013-35, Vancouver School of Economics, revised 30 Jul 2013.
  • Handle: RePEc:ubc:clssrn:clsrn_admin-2013-35
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    Cited by:

    1. Kelly Chen & Lars Osberg & Shelley Phipps, 2019. "Unequal opportunities and public policy: The impact of parental disability benefits on child postsecondary attendance," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(4), pages 1401-1432, November.
    2. Gordon B. Dahl & Anne (A.C.) Gielen, 2018. "Intergenerational Spillovers in Disability Insurance," Tinbergen Institute Discussion Papers 18-015/V, Tinbergen Institute.

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    More about this item

    Keywords

    Disability Benefits; Child Well-Being; Welfare; Intergenerational Transmission;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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