Assessing the impact of a wage subsidy for single parents on social assistance

This paper studies the impact of a wage subsidy program aimed at long-term social assistance recipients in Quebec. The program closely mimics the Self-Sufficiency Project and was implemented for a trial period of one year in 2002.We focus on the labour market transitions of the targeted population starting one year before the implementation of the program and until the end of 2005. Our results show that the duration of spells off social assistance increased, while the duration of social assistance spells decreased slightly. The response to the program varies considerably with both observed and unobserved characteristics.