The Integration of Child Tax Credits and Welfare: Evidence from the National Child Benefit Program
University of British Columbia - Department of Economics; National Bureau of Economic Research (NBER)
University of Toronto - Department of Economics; National Bureau of Economic Research (NBER); University of Toronto - Rotman School of Management
NBER Working Paper No. w10968
In 1998, the Canadian government introduced a new child tax credit. The innovation in the program was its integration with social assistance (welfare). Some provinces agreed to subtract the new federally-paid benefits from provincially-paid social assistance, partially lowering the welfare wall. Three provinces did not integrate benefits, providing a quasi-experimental framework for estimation. We find large changes in social assistance take-up and employment in provinces that provided the labour market incentives to do so. In our sample, the integration of benefits can account for around one third of the total decline in social assistance receipt between 1997 and 2000.
Number of Pages in PDF File: 43working papers series
Date posted: December 19, 2004
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo7 in 0.594 seconds