Intergenerational reliance on social assistance: Evidence from Canada

Abstract

This paper provides the first analysis of the intergenerational transmission of participation in a Canadian social assistance program. Two sources of intergenerational transmission are taken into account: one that is due to a possible causal link between parents' and children's participation, and one that is due to a correlation between individual and environment specific characteristics across generations. The basic data come from the Québec government's administrative records and cover 17,203 young people who were 18 years old in 1990 and whose parents were recipients of social assistance during at least one month between 1979 and 1990. The results reveal that, on average, a one-percentage unit increase in parental participation during the youth's pre-adult years (age 7–17) raises the youth's participation rate by 0.29 percentage unit during early adulthood (age 18–21). This impact is stronger during the early stages of childhood (age 7–9) and during late adolescence (age 16–17).