Welfare Reforms and Consumption Among Single Mother Households: Evidence From Canadian Provinces

This paper evaluates the impact of the 1995-1998 Ontario welfare reforms on the consumption among single mothers. Because welfare is a provincial responsibility in Canada, this study is able to consider the effects of the welfare reforms in Ontario, in comparison with other Canadian jurisdictions at the same time. By utilizing a difference in difference design I compare the changes in the consumption levels among Ontario single mothers to changes in the consumption levels among three distinct segments of Canadian population. The comparison with demographically identical groups under different provincial administrations and the implementation of difference in difference propensity score matching estimates sets my approach apart from previous similar work. The results indicate an initial decrease in the relative consumption levels among Ontario single mothers. This negative policy impact is not present in the long-term results.