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Professor of Economics
Tax credits; National child benefit; Welfare; Maternal employment; Child benefits
Milligan K., Stabile M. (2007). The Integration of Child Tax Credits and Welfare: Evidence from the Canadian National Child Benefit Program Journal of Public Economics, 91(1-2), pp. 305-326.
In 1998, the Canadian government introduced a new child tax credit. The innovation in the program was its integration with social assistance (welfare). Some provinces agreed to subtract the new federally-paid benefits from provincially-paid social assistance, partially lowering the welfare wall. Other provinces did not integrate benefits, providing a quasi-experimental framework for estimation.The authors find large changes in social assistance take-up and employment in provinces that provided the labour market incentives to do so. In this sample, the integration of benefits can account for between 19 and 27% of the decline in social assistance receipt between 1997 and 2000.