A welfare trap? The duration and dynamics of social assistance use among lone mothers in Canada

Abstract

In the late 1990s, the Canadian social assistance policy changed to focus on reducing "dependency" or long-term receipt. Using data from the Survey of Labour and Income Dynamics (1996-2001) and event history models, we investigate the duration of social assistance receipt for lone mothers and other household heads. We find that lone mothers' education and labor force experience were less important predictors for their duration on social assistance than their previous marital history. Although receipt was generally short term, we find evidence of negative duration dependence, or a "welfare trap," after controlling for unobserved heterogeneity. This indicates one way in which a welfare receipt is not only the result of particular life course trajectories but also shapes lives.