When Can Experimental Evidence Mislead? A Re-Assessment of Canada's Self Sufficiency Project

Chris Riddell and W. Craig Riddell

No 9939, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The Self-Sufficiency Project was a well-known welfare-to-work experiment that provided a generous but time-limited financial incentive to leave welfare and enter the workforce. Experimental evidence showed large short-term impacts but no lasting effects. We argue that these conclusions need to be re-assessed. Policy changes implemented during the SSP implied the behavior of the control group did not provide an appropriate counterfactual. We estimate the impacts the financial incentive would have had in a stable policy environment. This re-assessment leads to significant changes in the lessons previously reached. Our study demonstrates that experimental findings need to be interpreted with care.

Keywords: welfare-to-work policies; social experiments; Self-Sufficiency Project (search for similar items in EconPapers)
JEL-codes: C90 H53 I38 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2016-05
New Economics Papers: this item is included in nep-exp and nep-ppm
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