Self-Sufficiency Project (SSP) – The Effects of Human Capital and Earnings Supplements on Income Assistance Dependence in Canada
This working paper uses data from the Self-Sufficiency Project (SSP) Applicant study to analyze the effects of educational attainment, work experience, work-related training, and earnings supplements on income assistance (IA) dependence. The main objective of the empirical analysis is to estimate the effects of these factors on both IA exit and IA re-entry rates.
This paper suggests that, contrary to conventional wisdom, formal education has no significant causal effect on IA use. The paper also finds substantial educational upgrading by single parents in receipt of IA.
Higher formal education does not cause lower welfare use. Instead, the paper finds that favourable unobserved characteristics — such as labour market ability, motivation, and preferences — cause some welfare clients to have both higher levels of education and shorter, less frequent spells on welfare. Consequently, the paper concludes that a policy aimed at improving the educational attainments of former welfare recipients may have only limited effects on the reliance on income assistance.
Project Details
Published: March 2006
Capability: Experimentation
Policy Area: Income Security - Welfare and Employment
Population: Low-income Populations - Low-skilled Workers - Social Assistance Recipients - Women - Communities and Families - EI Recipients
Type: Working paper
Other Related Projects
Basic Income Feasibility Study
SRDC is working with Pauktuutit Inuit Women of Canada to explore the feasibility of basic income in Inuit Nunangat and its potential impacts on…
Read More
Strategic Evaluation and Learning Support for the Future Skills Centre 2025
Since 2020, the Future Skills Centre (FSC) has supported the development, refinement, or expansion of approaches to developing skills for workers from a variety…
Read More
Expanding Apprenticeship Success Through Improved and Enhanced System of Technology (EAST Project)
SkillPlan, BC Construction Industry Skills Improvement Council, in partnership with Canada’s Building Trades Unions (CBTU), Provincial Building Trades Councils (PBTC), U7 SOLUTIONS, British Columbia…
Read More
