haku: @indexterm welfare economics / yhteensä: 236
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| Tekijä: | Brouillette, D. Lacroix, G. |
| Otsikko: | Heterogeneous treatment and self-selection in a wage subsidy experiment |
| Lehti: | Journal of Public Economics
2010 : AUG, VOL. 94:7-8, p. 479-492 |
| Asiasana: | welfare economics Canada |
| Kieli: | eng |
| Tiivistelmä: | The Self-Sufficiency Project (SSP) is a research and demonstration project offering a generous time-limited income supplement to randomly selected welfare applicants under two conditions: 1. the eligibility (hereafter as: elgby.) condition required them to remain on welfare for at least 12 months, 2. the qualification condition required them to find a full-time job within 12 months after establishing elgby. This paper focuses on a neglected and important feature of the program, that is, that the financial reward for becoming qualified is inversely related to the expected wage rate. It is shown that those having a low expected wage rate have a clear incentive to establish elgby. It is strongly suggested by empirical evidence that individuals self-select into elgby. A participation equation and a wage equation correlated through individual random effects are jointly estimated. The results show that the omission of self-selectivity into qualification translates into slightly underestimated treatment effects. |
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