Working Paper: NBER ID: w28556
Authors: Michael Baker; Derek Messacar; Mark Stabile
Abstract: We investigate whether child tax benefits reduce child poverty and labor force participation among single mothers within the context of the 2015 expansion of the Canadian Universal Child Care Benefit (UCCB) and the 2016 introduction of the Canada Child Benefit (CCB). We compare single mothers to single childless women as single mothers have historically had the highest poverty rates. Our analysis indicates that both reforms reduced child poverty, although the Canada Child Benefit had the greater effect. We find no evidence of a labor supply response to either of the program reforms on either the extensive or intensive margins.
Keywords: child tax benefits; poverty; labor supply; Canada Child Benefit; Universal Child Care Benefit
JEL Codes: H27; J13; J21; J30
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| UCCB expansion (H29) | reduction in child poverty rates among single mothers (J12) |
| CCB introduction (Y20) | reduction in child poverty rates among single mothers (J12) |
| CCB introduction (Y20) | increase in transfer income for single mothers (F16) |
| UCCB expansion (H69) | increase in transfer income for single mothers (F16) |
| UCCB expansion (H29) | no significant evidence of labor supply response among single mothers (J22) |
| CCB introduction (Y20) | no significant evidence of labor supply response among single mothers (J22) |