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The Employment Impacts of Active Labour Market Policy: The Case of SSP Plus

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  • Saul Schwartz
  • Jeffrey Zabel

Abstract

We assess the impact of one part of a large Canadian active labour market project known as the SelfSufficiency Project (SSP). Here, we focus on the SSP Plus component, which offered job-related services to former welfare recipients in addition to a generous earnings supplement. We explore two explanations for the positive incremental impact of SSP Plus on the full-time employment rate: (a) SSP Plus induced more individuals to take up full-time work; and (b) the availability of the employment services increased the likelihood that those who qualified for the supplement would work full-time. Using the propensity score matching technique, we find evidence that the impact was the result of both factors with the latter confined to those participants who would not have taken up full-time work without the incentives provided by SSP Plus.

Suggested Citation

  • Saul Schwartz & Jeffrey Zabel, 2008. "The Employment Impacts of Active Labour Market Policy: The Case of SSP Plus," Canadian Public Policy, University of Toronto Press, vol. 34(3), pages 321-344, September.
    • Handle: RePEc:cpp:issued:v:34:y:2008:i:3:p:321-344
    DOI: 10.3138/cpp.34.3.321
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    References listed on IDEAS

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    1. Michael Lechner, 2002. "Some practical issues in the evaluation of heterogeneous labour market programmes by matching methods," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(1), pages 59-82, February.
    2. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    3. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    4. Curtis Eberwein & John C. Ham & Robert J. Lalonde, 1997. "The Impact of Being Offered and Receiving Classroom Training on the Employment Histories of Disadvantaged Women: Evidence from Experimental Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 655-682.
    5. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 01 Feb 2018.
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    Cited by:

    1. Jeffrey Zabel & Saul Schwartz & Stephen Donald, 2010. "The impact of the Self‐Sufficiency Project on the employment behaviour of former welfare recipients," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(3), pages 882-918, August.

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