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An Econometric Analysis of Intergenerational Reliance on Social Assistance

Author

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  • Beaulieu, Nicolas
  • Duclos, Jean-Yves
  • Fortin, Bernard
  • Rouleau, Manon

Abstract

This paper examines the intergenerational transmission of participation in Québec's social assistance program. The analysis takes into account two sources of intergenerational transmission: one that is due to a causal link between parents' and children's participation and one that is due to a correlation between individual or environment-specific characteristics across generations. Our data come from the records of Québec's Ministère de la Solidarité Sociale and cover 17,203 young people who were 18 years old in 1990 and whose parents were recipients of social assistance during at least one month between 1979 and 1990. Our results reveal that, on average, a one-month increase in the parental participation during the youth's pre-adult years (age 7-17) raises the youth's participation by about 0.15 month during early adulthood (age 18-21). Moreover, this impact is stronger during the early stages of childhood (age 7-9) and late adolescence (age 16-17).

Suggested Citation

  • Beaulieu, Nicolas & Duclos, Jean-Yves & Fortin, Bernard & Rouleau, Manon, 2001. "An Econometric Analysis of Intergenerational Reliance on Social Assistance," Cahiers de recherche 0116, Université Laval - Département d'économique.
    • Handle: RePEc:lvl:laeccr:0116
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    File URL: http://www.ecn.ulaval.ca/w3/recherche/cahiers/2001/0116.pdf
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    References listed on IDEAS

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    4. Gottschalk, Peter, 1996. "Is the correlation in welfare participation across generations spurious?," Journal of Public Economics, Elsevier, vol. 63(1), pages 1-25, December.
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    7. Mary Corcoran & Roger Gordon & Deborah Laren & Gary Solon, 1992. "The Association between Men's Economic Status and Their Family and Community Origins," Journal of Human Resources, University of Wisconsin Press, vol. 27(4), pages 575-601.
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    12. An, Chong-Bum & Haveman, Robert & Wolfe, Barbara, 1993. "Teen Out-of-Wedlock Births and Welfare Receipt: The Role of Childhood Events and Economic Circumstances," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 195-208, May.
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    Cited by:

    1. Coelli, Michael B. & Green, David A. & Warburton, William P., 2007. "Breaking the cycle? The effect of education on welfare receipt among children of welfare recipients," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1369-1398, August.

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    More about this item

    Keywords

    Dynamics of social assistance participation; Intergenerational correlation; Canadian welfare programmes;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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