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IZA Discussion Paper No. 9939
May 2016
When Can Experimental Evidence Mislead? A Re-Assessment of Canada's Self Sufficiency Project

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.

Kommunikation
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Netzwerkkoordination
Christina Gathmann
christina.gathmann@liser.lu

Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

Über das IZA@LISER Network
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