The Welfare Enigma

📖 The Scoop

Increases in SA spending by provincial governments in principle meant an automatic commitment on the part of the federal government, but when increases in the CAP payments became too great in the eyes of the federal government in the late 1980s and early 1990s, it imposed a limit on annual transfer increases ("capping the CAP") to the provinces of Ontario, Alberta and British Columbia, thereby tra [...] The first of these is the (generally decreases) in the generosity of the EI unemployment rate of the economic region in system, (iii) changes (almost uniformly declines) in which the person resides.19 The unemployment rate 18 See Finnie, Irvine and Sceviour (2004) for a description of the models (estimated over a somewhat shorter period) which have been used to generate the results presented here. [...] The full system made in the 1990s, with these independent description of the model and the results are in the changes helping to identify the parameter.20 Appendix of this paper.22 20 Note the importance of including the unemployment rate measured at the local level (economic region) in order to control for economic conditions when estimating the effects of the EI system, since its generosity (and [...] These results thus the declining SA benefit levels, and the reduced EI suggest that the significant declines in unemploy- generosity that occurred over this period, while the ment rates that occurred through the latter part of underlying "structure" of SA remained fairly the 1990s were responsible for a substantial share of constant through the end of the decade after rising the decline in SA rate [...] That is, changes in the unemployment esting, is that the general decreases in SA benefit rate, SA benefit levels, and the generosity of the EI levels available to lone parents played the most system explain most of the observed declines in SA important role, while the effects of the decline in the participation rates, with their magnitudes of impor- unemployment rate came third, and the changes in.

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