THE DETERMINANTS OF SOCIAL ASSISTANCE RATES: EVIDENCE FROM A PANEL OF CANADIAN PROVINCES, 1997-1996

Abstract

In this study, we focus on several potential determinants of provincial social assistance rates: the unemployment rate, the UI wage replacement rate and eligibility rules, the SA benefit level, the minimum wage, and the average industrial wage. Specifically, we try to quantify their respective contributions to observed fluctuations in provincial social assistance rates over the period 1977-1996. This is facilitated by the fact that there was plenty of movement across provinces in these various influences over the last 20 years.