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

Authors
Disciplines
  • Economics
  • Mathematics

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.

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