Human Capital and Welfare Dynamics in Canada
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Jorgen Hansen
Abstract
This paper analyzes the effects of human capital on welfare dynamics in Canada using data from the Self-Sufficiency Project (SSP). SSP offered a time-limited earnings supplement to a randomly assigned group of new welfare applicants who remained on welfare for one year and, in the subsequent year, left welfare for full-time employment. The results suggest that high school completion has no significant impact on the exit rate from welfare or on the re-entry rate. Moreover, full-time work experience is found to reduce the risk of returning to welfare but not for respondents who were assigned to the treatment group. This finding suggests that the provision of an earnings subsidy encourages welfare recipients to accept low-wage jobs with little gains from work experience. Thus, the rationale for such a policy that work today will raise experience and consequently future wages is not supported by the results in this paper.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Artikel in diesem Heft
- Contributions Article
- Regional Integration, Subsidy Competition and the Relocation Choice of MNCs
- Academic Journal Prices in a Digital Age: A Two-Sided Market Model
- A Model of Dysfunctional Urges and Addiction with an Application to Cigarette Smoking
- Gasoline Price Differences: Taxes, Pollution Regulations, Mergers, Market Power, and Market Conditions
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- Market Power Effects on Market Equilibrium in Ambient Permit Markets
- The Optimal Consumption and the Quitting of Harmful Addictive Goods
- The Pro-collusive Effect of Increasing the Repose Period for Price Fixing Agreements
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- Animal House: Economics of Pets and the Household
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- Atkinson-Stiglitz Theorem with Endogenous Human Capital Accumulation
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- Optimal Origin-based Commodity Taxation in a Small Open Economy
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- Advances Article
- State Graduation Requirements, High School Course Taking, and Choosing a Technical College Major
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- Energy Taxes in Three Political Economy Models
- Foreign Direct Investment, Endogenous Tariffs, and Preferential Trade Agreements
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- Gender Specialization of Skill Acquisition
- Racial and Economic Factors in Attitudes to Immigration
- The Katrina Effect: Was There a Bright Side to the Evacuation of Greater New Orleans?
- Topics Article
- The Timing of Prenatal WIC Participation
- The Role of Distance in Gravity Regressions: Is There Really a Missing Globalisation Puzzle?
- Resource Allocation with Spatial Externalities: Experiments on Land Consolidation
- How Standards Drive Taxes: The Political Economy of Tailpipe Pollution
- The Transactions Demand for Credit Cards
- Endogenous Corruption in a Federation
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- The Pollution Haven Paradox: Can an Effluent Tax Improve both Profits and Welfare?
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