Are two carrots better than one? The effects of adding employment services to financial incentive programs for welfare recipients

Philip K. Robins, Charles Michalopoulos, Kelly Foley

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

The Self-Sufficiency Project (SSP) was a social experiment conducted in two Canadian provinces during the 1990s that tested a generous financial incentive program for welfare recipients. A little-known subsidiary experiment, called SSP Plus, had a three-way design that tested the incremental effect of adding employment services to the generous financial incentive program. Employment services are viewed by many welfare analysts as an important component of an overall strategy for helping welfare recipients escape poverty and achieve stable employment. This paper presents the results of the SSP Plus experiment. Adding employment services encouraged more people to take up the earnings supplement, and it appeared to have long-term effects on full-time employment and welfare receipt. This might be because the services improved the jobs people obtained. Compared to program participants who lacked the added services, SSP Plus members had higher earnings and wage rates, and also appear to have held more sustainable jobs.

Original languageEnglish (US)
Pages (from-to)410-423
Number of pages14
JournalIndustrial and Labor Relations Review
Volume61
Issue number3
DOIs
StatePublished - Apr 2008

ASJC Scopus subject areas

  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

Fingerprint Dive into the research topics of 'Are two carrots better than one? The effects of adding employment services to financial incentive programs for welfare recipients'. Together they form a unique fingerprint.

Cite this