THE DETERMINANTS OF WELFARE PARTICIPATION OF FEMALE HEADS OF HOUSEHOLD IN CANADA

This paper assesses the impact on the probability of welfare participation of budget constraint variables such as the expected wage, welfare benefit level, and implicit welfare tax rate. The empirical results are based on a model of welfare participation that is estimated using a sample of female heads of household in Canada. The coefficients on the budget constraint variables are significant and carry signs that are generally consistent with the predictions of the model and the results of related studies based on data from the United States. In addition to the budget constraint variables, which include important policy tools, a wide range of sociodemographic variables are included in the specification.