Please use this identifier to cite or link to this item: http://arks.princeton.edu/ark:/88435/dsp01t148fh15n
 Title: Do Financial Incentives Encourage Welfare Recipients to Work? Early Findings from the Canadian Self Sufficiency Project Authors: Card, DavidRobins, Philip Keywords: welfaresocial experimentlabor supply Issue Date: 1-Mar-1996 Citation: SDRC, February, 1996, Research in Labor Economics, forthcoming Series/Report no.: Working Papers (Princeton University. Industrial Relations Section) ; 359 Abstract: This paper presents results from an experimental evaluation of an earnings supplement program offered to long-term welfare recipients in two Canadian provinces. The program -- known as the Self-Sufficiency Project - provides a supplement equal to one-half of the difference between an earnings target ($2,500 or$3083 per month, Canadian dollars, depending on the province) and the individual's actual earnings. The supplement is similar to a negative income tax with two important differences: (1) eligibility is limited to long-term welfare recipients who ﬁnd a full-time job (30 hours per week or more); and (2) the supplement payment is based on individual earnings rather than family income. The evaluation is based on a randomized design that will follow 6,000 individuals for ﬁve years. Early ﬁndings for a ﬁrst cohort of 2,000 individuals observed over 18 months of program eligibility suggest that the ﬁnancial incentives of the Self-Sufﬁciency Program signiﬁcantly increase labor market attachment and signiﬁcantly reduce welfare participation. URI: http://arks.princeton.edu/ark:/88435/dsp01t148fh15n Appears in Collections: IRS Working Papers