This working paper asks whether wage or earnings supplement programs encourage participants to move into jobs with greater wage growth or to change jobs more often in order to raise their wages, and provides an analytical model that identifies the key causal links between earnings subsidies and wage growth. The paper then applies this analytical model to data obtained from the Self-Sufficiency Project (SSP) to see if the SSP data is consistent with what would be predicted from the model.
Published: January 2003
Policy Area: Income Security - Welfare and Employment
Population: Women - Communities and Families - EI Recipients - Low-income Populations - Low-skilled Workers - Social Assistance Recipients