The Integration of Child Tax Credits and Welfare: Evidence from the National Child Benefit Program

43 Pages Posted: 19 Dec 2004 Last revised: 14 Aug 2009

See all articles by Kevin S. Milligan

Kevin S. Milligan

University of British Columbia (UBC) - Department of Economics; National Bureau of Economic Research (NBER)

Mark Stabile

INSEAD; National Bureau of Economic Research (NBER)

Date Written: December 2004

Abstract

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.

Suggested Citation

Milligan, Kevin S. and Stabile, Mark, The Integration of Child Tax Credits and Welfare: Evidence from the National Child Benefit Program (December 2004). NBER Working Paper No. w10968. Available at SSRN: https://ssrn.com/abstract=633629

Kevin S. Milligan

University of British Columbia (UBC) - Department of Economics ( email )

997-1873 East Mall
Vancouver, BC V6T 1Z1
Canada

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Mark Stabile (Contact Author)

INSEAD ( email )

Boulevard de Constance
F-77305 Fontainebleau Cedex
France

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
45
Abstract Views
1,254
PlumX Metrics