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The Limits to Wage Growth: Measuring the Growth Rate of Wages For Recent Welfare Leavers / David Card, Charles Michalopoulos, Philip K. Robins.
- Format:
- Book
- Author/Creator:
- Card, David.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w8444.
- NBER working paper series no. w8444
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- The Limits to Wage Growth
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2001.
- Summary:
- We study the rate of wage growth among welfare leavers in the Self Sufficiency Program (SSP), an experimental earnings subsidy offered to long-term welfare recipients in Canada. Single parents who started working in response to the SSP incentive are younger, less educated, and have more young children than those who would have been working regardless of the program. They also earn relatively low wages in their first few months of work: typically within $1 of the minimum wage. Despite these differences, their rate of wage growth is similar to other welfare leavers. We estimate that people who were induced to work by SSP experienced real wage growth of about 2.5 - 3 percent per year - a rate consistent with conventional measures of the return to experience for similar workers.
- Notes:
- Print version record
- August 2001.
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