Canada has a universal social assistance program that is almost
completely administered through the federal Canada Assistance Program.
However, provinces determine the levels of assistance for various groups
eligible for welfare. This article exploits the variation in payments
and uses microdata to estimate the effect of changes in welfare benefits
on welfare participation, single parenthood, births out of wedlock,
divorce, and labor force participation among low-income women. In
Canada, it would appear that welfare benefits influence these decisions.