Self-Sufficiency Project (SSP) – Distributional Impacts of the Self-Sufficiency Project

Summary

This working paper examines the impacts of the Self-Sufficiency Project (SSP) on the distribution of earnings, transfers, and income using quantile treatment effect (QTE) estimation. QTE estimates show that the SSP program had heterogeneous impacts on the distributions of earnings, transfers, and total income — heterogeneity that would be missed by looking only at average treatment effects. The authors argue that these findings are consistent with labour supply theory, in which workers respond to financial incentives by changing their hours worked and, in some cases, reducing the reservation wages at which they will just be willing to take a job.

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