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Welfare Reforms and Consumption Among Single Mother Households: Evidence From Canadian Provinces

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Abstract

This paper evaluates the impact of the 1995-1998 Ontario welfare reforms on the consumption among single mothers. Because welfare is a provincial responsibility in Canada, this study is able to consider the effects of the welfare reforms in Ontario, in comparison with other Canadian jurisdictions at the same time. By utilizing a difference in difference design I compare the changes in the consumption levels among Ontario single mothers to changes in the consumption levels among three distinct segments of Canadian population. The comparison with demographically identical groups under different provincial administrations and the implementation of difference in difference propensity score matching estimates sets my approach apart from previous similar work. The results indicate an initial decrease in the relative consumption levels among Ontario single mothers. This negative policy impact is not present in the long-term results.

Suggested Citation

  • Matthew Brzozowski, 2005. "Welfare Reforms and Consumption Among Single Mother Households: Evidence From Canadian Provinces," University of Western Ontario, Economic Policy Research Institute Working Papers 200510, University of Western Ontario, Economic Policy Research Institute.
  • Handle: RePEc:uwo:epuwoc:200510
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    File URL: http://economics.uwo.ca/epri/workingpapers_docs/wp2005/Brzozowski_10.pdf
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    References listed on IDEAS

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    1. Fortin, Bernard & Lacroix, Guy & Drolet, Simon, 2004. "Welfare benefits and the duration of welfare spells: evidence from a natural experiment in Canada," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1495-1520, July.
    2. Martin D. Dooley & Stéphane Gascon & Pierre Lefebvre & Philip Merrigan, 2000. "Lone Female Headship and Welfare Policy in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 587-602.
    3. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    4. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, August.
    5. Lemieux, Thomas & Milligan, Kevin, 2008. "Incentive effects of social assistance: A regression discontinuity approach," Journal of Econometrics, Elsevier, vol. 142(2), pages 807-828, February.
    6. Kevin Milligan & Mark Stabile, 2004. "The Integration of Child Tax Credits and Welfare: Evidence from the National Child Benefit Program," NBER Working Papers 10968, National Bureau of Economic Research, Inc.
    7. Nicolas Beaulieu & Jean-Yves Duclos & Bernard Fortin & Manon Rouleau, 2005. "Intergenerational reliance on social assistance: Evidence from Canada," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(3), pages 539-562, September.
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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. 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

    Keywords

    welfare reform; difference in difference; lone mother;

    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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