Aperçu

Résumé (français)

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Résumé (anglais)

While poverty afflicts many demographic groups, child poverty is typically viewed with particular concern. In response, governments in many countries have designed social programs to provide resources to families with young children. These take various forms including targeted means-tested cash transfers, in-kind transfers, vouchers for services, or services themselves. Which of these alternatives is the most successful at reducing child poverty while at the same time being affordable remains an open question. This paper attempts to answer this question by examining the effect of the introduction of the Canada Child Benefit (CCB) on child poverty and family labour supply. Our analysis indicates that there was a decline in poverty, with much of the relative decline being confined to a reduction in the poverty rate of single mothers. However, this appears to be due to an increase in poverty in single women without children. We find no evidence of a labour supply response to either of the program reforms on either the extensive or intensive margin.