Experiments and Natural Experiments

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Unformatted text preview: 06 ) Other issues that arose in interpreting the NIT data included: o external validity, extent to which one can generalize from the sites chosen to country as a whole o whether short duration experiments provide evidence on long term responses Fortin – Econ 560 Lecture 1C b. Self-Sufficiency Project (SSP) SSP demonstration carried out in provinces of BC and NB in 1990s Experimental sample randomly assigned between Nov 1992 and Feb 1995 Sample size: program group 2859, control group 2827 SSP was designed to test a financial incentive to leave welfare – a policy to “make work pay” Targeted single parents on welfare for at least 12 months Intended effect on increasing long-term employment was through accumulated work experience SSP Earnings Supplement (ES) (see complete description Card and Hyslop (2005)) Supplement payment is ½ the difference between actual earnings and an earnings benchmark, equal to $2,500 per month in NB and $3,083 per month in BC in 1993, and adjusted for inflation in later years Supplement payments not affected by unearned income, or income of spouse/partner, ES treated as regular income for income tax purposes Eligibility: 12 months following random assignment to obtain Full-Time employment (FT = at least 30 hours per week on average over the month) Receipt: up to 3 years of ES providing FT employment maintained Supplement quite generous relative to U.S. programs tested in early 1990s 1728 D. CARD AND D. R. HYSLOP of the incentive effects of SSP,however, we summarizethe key experimental findingsfrom the demonstration. B. TheSSP SampleCharacteristics Basic Impactson Welfare and The data associated with the SSP experiment were assembled from three separate sources. Income Assistance data were obtained from provincialwelfare records.The SSP participationand receipt data were collected from SSP administrativerecords. Demographic data and labor market outcomes were obtained from surveysconducted at 18-month intervals,startingwith a baseline surveyjust prior to random assignment.TableII gives an overviewof the characteristics the SSP sample. Columns 1 and 2 of the table show the mean of of characteristics the control and programgroups of the experiment,while the Source: Card and Hyslop (2005) TABLEII CHARACTERISTICS EXPERIMENTAL OFSSP SAMPLEa Program Group, by SSP Eligibility Status Controls In BritishColumbia(%) Male (%) Mean age Age 25 or less (%) Never married(%) Average numberkids <6 Averagenumberkids 6-15 Programs Eligible Ineligible 52.6 4.7 31.9 17.8 48.1 0.7 0.8 13.8 59.7 44.6 7.4 19.0 29.6 41.5 53.2 5.2 31.9 17.1 48.3 0.7 0.8 13.3 59.4 45.7 7.3 18.2 30.1 43.8 50.9 4.6 31.1 18.5 48.0 0.7 0.8 12.2 62.1 56.9 8.6 31.5 29.2 36.3 54.4 5.5 32.4 16.3 48.5 0.7 0.8 13.9 58.1 39.9 6.7 11.4 30.6 47.7 83.1 72.4 65.9 63.3 58.8 53.5 48.4 45.0 62.8 39.1 27.2 26.5 27.6 29.3 28.5 25.4 957 93.5 89.4 85.6 82.1 74.8 65.9 58.5 55.0 Immigrant(%) Grew up with two parents(%) High school graduate(%) Means yearswork exp. Workingat randoma...
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This document was uploaded on 02/26/2014 for the course ECON 560 at UBC.

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