Abstract
The main goal of this paper is to analyze the impact of the unemployment insurance (UI) program on the rates of entry into and exit from welfare by single-parent households in Quebec. The database we use comes from Quebec welfare records and comprises over 11,180 single-parent households, most of which (92 percent) are headed by a woman. Our results show that tightening the conditions of eligibility to UI causes a reduction of exits from welfare, especially for the older group, and an increase in re-entries. Similarly, a cut in the UI replacement rate raises the rate of re-entry into welfare. Our results indicate that cuts in the UI program may partially explain the increase in the welfare participation of lone mothers observed recently.
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