Canada's Earnings Supplement Project (ESP) Evaluation

General Information

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Evaluator(s) Social Research and Demonstration Corporation
Investigator(s) Saul Schwartz (Social Research and Demonstration Corporation)
Howard Bloom (Social Research and Demonstration Corporation)
Sponsor(s) Human Resources Development Canada
Funder(s) Human Resources Development Canada
Subcontractor(s) Statistics Canada
 
Domain Income Security/TANF
Status Completed (final report released)
Duration Mar 1995 - Nov 1998
Type Research and/or Program Evaluation
Goal ESP was designed to: 1) determine whether a test of a re-employment earnings supplement could be implemented within an operating program; 2) measure the impacts of the supplement program on the future employment, earnings, and UI benefit receipt of displaced workers and repeat UI users; 3) compare the costs and benefits of such a program; and 4) document the personal experiences of the displaced workers and repeat UI users involved in the program.
Program/Policy Description The Earnings Supplement Project (ESP) is a multi-site demonstration program that is testing an innovative financial incentive designed to stimulate re-employment. ESP provides a re-employment earnings supplement for selected applicants if they leave the unemployment insurance (UI) program quickly for a full-time job, and the new job pays less than the one they had before applying to UI. In general, the supplement is calculated to make up three-quarters of the difference between earnings in a new job and earnings in the job that was lost. For this project, supplements are being offered to two subgroups of UI claimants- those displaced from long-term employment and those with a history of repeat UI use. To encourage a rapid return to work, eligibility is conditional on leaving UI within a specified time period. The goal for the displaced workers is to shorten their often long and painful re-employment process. The goal for repeat UI users is to stimulate "off-season" employment and promote a shift toward year-round jobs.
Notes No notes reported.
 
Last Updated 08/18/04
Type of Summary Reviewed
External Reviewer(s) Saul Schwartz (Social Research and Demonstration Corporation)
Contact(s) Saul Schwartz (schwartz@srdc.org)
Social Research and Demonstration Corporation
50 O'Connor Street
Suite 1400
(T) (613) 237-4311
(F) (613) 237-5045
Publications Department SRDC publications dept. (srdc@istar.ca)
Social Research and Demonstration Corporation
50 O'Connor Street
Suite 1400
(T) (613) 237-4311
(F) (613) 237-5045

Populations Studied

Target Population Recipients/participants/clients
Applicants
Subgroups Analyzed None
Sample Size and Unit 8,144 displaced workers and 3,414 repeat UI users.
4,063 displaced workers and 1,707 repeat UI users were assigned to the treatment group.
4,081 displaced workers and 1,707 repeat UI users were assigned to the control group.

NOTE: UI applicants were checked for eligibility (differing on whether they were at a displaced worker site or a repeat UI users site) by CEC staff, and eligible applicants were asked to participate in the study. They were then randomly assigned by computer to either the supplement group or the standard group.

Execution Not reported.

Sites Studied

9 Canada Employment Centers (CECs) located in seven provinces.
Findings for displaced workers will be based of ESP demonstrations run at CECs in:
Granby, Quebec
Oshawa, Ontario
Toronto, Ontario
Winnipeg, Manitoba
Saskatoon, Saskatchewan

Findings for repeat UI users will be based on ESP demonstration programs run at CECs in:
St. Johns, Newfoundland
Halifax, Nova Scotia
Moncton, New Brunswick
Levis, Quebec