This paper evaluates the short-term and long-term impacts of SSP on employment and unemployment durations for those who received SSP supplement payments. The paper finds evidence of significant short-term impacts on employment and unemployment durations. The paper also finds that SSP appears to have a long-term positive impact on the employment rate of the take-up program group. This appears to be due to the long-term decrease in the probability of exit from employment for take-up program group members. The paper obtains unbiased estimates of durations by estimating a joint model of employment and unemployment durations that controls for unobserved heterogeneity and non-random selection into work. The paper finds that these two factors had little influence on exits from employment and unemployment.
Published: July 2004
Policy Area: Income Security - Welfare and Employment
Population: Low-income Populations - Low-skilled Workers - Social Assistance Recipients - Women - Communities and Families - EI Recipients