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How Do the US and Canadian Social Safety Nets Compare for Women and Children?

Journal of Labor Economics 2019 37(S2), S253-S288
The past quarter-century has seen substantial change in the social safety nets for families with children in the United States and Canada. Both countries have moved away from cash welfare, but the United States has relied more on work requirements. We examine the implications for the employment and poverty of low-educated single mothers. We find that employment improved substantially in both countries, absolutely and relative to a control group of single women without children. Poverty rates also declined in both countries, with more of the decline coming through market income in the United States and benefit income in Canada.

The Changing Role of Government in Financing Health Care: An International Perspective

Journal of Economic Literature 2014 52(2), 480-518 open access
This paper explores the changing role of government involvement in health care financing policy outside the United States. It provides a review of the economics literature in this area to elucidate the implications of recent policy changes on efficiency, costs, and quality. Our review reveals that there has been some convergence in policies adopted across countries to improve financing incentives and encourage efficient use of health services. In the case of risk pooling, all countries with competing pools experience similar difficulties with selection and are adopting more sophisticated forms of risk adjustment. In the case of hospital competition, the key drivers of success appear to be what is competed on and measurable, rather than whether the system is public or private. In the case of both the success of performance-related pay for providers and issues resulting from wait times, evidence differs within and across jurisdictions. However, the evidence does suggest that some governments have effectively reduced wait times when they have chosen explicitly to focus on achieving this goal. Many countries are exploring new ways of generating revenues for health care to enable them to cope with significant cost growth, but there is little evidence to suggest that collection mechanisms alone are effective in managing the cost or quality of care. (JEL H51, I11, I18)

Effects of Child Tax Benefits on Poverty and Labor Supply: Evidence from the Canada Child Benefit and Universal Child Care Benefit

Journal of Labor Economics 2023 41(4), 1129-1182
We investigate how reforms of Canada’s child allowances affected household poverty and maternal employment—the 2015 increase and expansion of the Universal Child Care Benefit and the 2016 introduction of a new Canada Child Benefit (CCB). We document that both reforms reduced child poverty, although the CCB had greater effect. By 2018, we estimate that the CCB reduced poverty by 11% in families headed by a single mother and by nearly 17% in two-parent families. We find no evidence, on either the extensive or the intensive margin, of a negative labor supply response to either of the program reforms.

Child Benefits, Maternal Employment, and Children's Health: Evidence from Canadian Child Benefit Expansions

American Economic Review 2009 99(2), 128-132
Industrial countries typically provide income transfers to families with young children. Traditionally, these family benefit programs were motivated by distributional concerns--families with children faced higher expenditure needs than other families, and a concern for horizontal equity led to transfers. Throughout the 1990s, however, many countries introduced benefits aimed at improving labor market incentives for mothers with young children. In the United States, the Earned Income Tax Credit (EITC) has played this role, but similar programs exist in Europe, Canada, and elsewhere. Much effort has been expended on evaluating the labor market impact of child benefits. However, less work has examined the impact of these programs on broader outcomes such as the mental and physical health of both the children and the parents, outcomes that follow from the traditional equity motivation for child benefits. In this paper, we review and extend some recent results studying the expansion of family benefits in Canada. In particular, we exploit a change that occurred in the province of Manitoba to highlight the effects of child benefits on both labor supply and family outcomes.