The economic and political determinants of provincial social assistance rates in Canada

The 1990s in Canada represented an era of social assistance reform by Canadian provincial governments. In large part provincial governments were forced to introduce reforms in order to reduce the cost of providing those programs. Changes took place in the face of swelling social assistance rolls, the reduction of federal cost-sharing due to the demise of the Canada Assistance Plan, and other external budgetary pressures.; A graphical and econometric examination of the economic and political determinants of social assistance rates indicates labour market conditions and economic incentives in the form of the size of social assistance benefit play an important role. Little consistent evidence of the influence on social assistance rates of workfare and similar rule changes could be found.; More study of this important public policy issue is needed. An important prerequisite for further study is the availability of consistent data on the number of social assistance recipients.