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Welfare Benefits , Minimum Wage Rate and the Duration of Welfare Spells : Evidence from a Natural Experiment in Canada *
| Content Provider | Semantic Scholar |
|---|---|
| Author | Fortin, Bernard |
| Copyright Year | 1997 |
| Abstract | In this paper we analyze the impact of bene ts on the length of welfare spells. It introduces a natural experiment approach of comparing the length of welfare spells before and after a major reform of the welfare program that took place in the Province of Québec in August 1989. An important feature of this reform was the abolishment of discrimination based on age that applied to the bene ts single individuals and childless couples below the age of 30 were entitled to. With the reform, their monthly bene ts rose from $173 ($ 1986) to $425, an increase of over 145%. To analyze the impact of the reform, we utilize a semi-parametric duration model with time-varying covariates such as welfare bene ts, minimum wage rate, unemployment rate, etc. We nd that bene ts have an important impact on spell duration of individuals below 30 years of age. We also nd that the minimum wage rate has an adverse e ect on the duration of individuals in the 18 24 age group but a positive e ect on those in the 25 29 age group. Finally, our estimates suggest that the reform increased the expected duration on welfare from 2 to 5 months. We would like to thank Patrick Déry, Éric Simard and Claude Bilodeau for able research assistance. Pierre Lanctôt, Ghislaine Morin and Suzanne Lévesque of the Ministère de l'emploi et de la solidarité provided useful comments on an earlier draft. Finally, we want to thank the Ministère de l'emploi et de la solidarité for nancial support and for providing the data, As well as Health and Welfare Canada and Centre Québécois de la Recherche Sociale for nancial support. CRÉFA and Department of Economics, Laval University CRÉFA, and Department of Economics, Laval University (guy.lacroix@ecn.ulaval.ca) |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.ecn.ulaval.ca/w3/recherche/cahiers/1997/9708.pdf |
| Alternate Webpage(s) | http://www.cirano.qc.ca/files/publications/97s-25.pdf |
| Alternate Webpage(s) | http://www.cirano.qc.ca/pdf/publication/97s-25.pdf |
| Language | English |
| Access Restriction | Open |
| Subject Keyword | Addresses (publication format) Baseline (configuration management) Blender (software) Ectomesenchymal Chondromyxoid Tumor Estimated Experiment Iscador Linear algebra MALL gene Occur (action) Paper Population Parameter Semiconductor industry Social Welfare TSFM gene Theory Unique Identifier User interface morin hydrate |
| Content Type | Text |
| Resource Type | Article |
