Appendix D: Detailed results Targeted Wage Subsidies

Official title: Evaluation of the Labour Market Development Agreements

Table D1. Socio-demorgraphic and labour market characteristics of Targeted Wage Subsidies participants
Active claimants Former claimants
2002-2005 2007-2008 2002-2005 2007-2008
Number of observations 18,772 9,114 24,525 10,613
Gender
Male 55% 53% 53% 51%
Female 45% 46% 46% 49%
Age
Under 25 10% 8% 13% 11%
25 to 34 27% 24% 31% 30%
35 to 44 30% 26% 27% 25%
45 and over 33% 42% 29% 34%
Marital status
Married or common-law 50% 51% 43% 43%
Widow/ divorced or separated 14% 13% 14% 12%
Single 34% 34% 40% 41%
Missing data / Unknown 2% 2% 3% 4%
Skills level related to National Occupation Code associated with  the last EI claim opened before Targeted Wage Subsidies participation 1
Managerial 5% 7% 4% 5%
University 6% 5% 7% 6%
College or apprenticeship training 29% 29% 27% 28%
Secondary or occupational training 36% 38% 35% 36%
On-the-job training 24% 21% 27% 25%
Key labour market indicators in the year preceding the start of participation
Earnings2 $18,511 $20,8663 $10,971 $11,3023
Proportion employed 98% 99% 86% 87%
Proportion on EI 59% 52% 68% 65%
Proportion on SA 7% 5% 15% 15%

Proportions may not add up to 100% due to rounding

1 Skill level corresponds to the type and/or amount of training or education typically required to work in the last occupation participants had before opening the last EI claim they had before participating in EBSMs:

  • -Managerial: Management occupations
  • -University: Occupations usually requiring university education (in other words, University degree at the bachelor's, master's or doctorate level)
  • -College or apprenticeship training: Occupations usually requiring college or vocational education or apprenticeship training such as 2 to 3 years of post-secondary education at a community college, institute of technology or CEGEP or 2 to 5 years of apprenticeship training or 3 to 4 years of secondary school and more than 2 years of on-the-job training, specialized training courses or specific work experience and/or occupations with supervisory responsibilities and occupations with significant health and safety responsibilities, such as firefighters, police officers and registered nursing assistants.
  • - Secondary or occupational training: Occupations usually requiring secondary school and/or occupation-specific training such as one to four years of secondary school education or up to 2 years of on-the-job training specialized training courses or specific work experience.
  • -On-the-job training: On-the-job training is usually provided for occupations (in other words, short work demonstration or on-the-job training or no formal educational requirements).

2 Average earnings for all individuals included in the studies. The average was calculated including participants who reported $0 earnings during that year.

3 Earnings for 2007-2008 participants have been adjusted by the Consumer Price Index published by Statistics Canada, using 2002 as the base year.

Table D2. Incremental impacts for Targeted Wage Subsidies - Active claimants
Indicators In-program period Post-program period Total in- and post-program
Program start year Additional year 1st year 2nd year 3rd year 4th year 5th year Total post
Active claimants
2002-2005 Participants (n=18,767)
Employment earnings ($) -1,404*** 752*** 661*** 971*** 1,747*** 1,815*** 1,930*** 7,125*** 6,473***
Incidence of employment
(percentage points)
4.4*** 7.2*** 5.0*** 4.9*** 5.1*** 5.0*** 5.1*** n/a n/a
EI benefits ($) 100*** -208*** -2 52 39 104*** 146*** 339*** 231
EI weeks (weeks) 0.3*** 0 0.5*** 0.4*** 0.3*** 0.4*** 0.5*** 2.1*** 2.4***
SA benefits ($) -24* -86*** -79*** -61*** -63*** -58*** -65*** -327*** -436***
Dependence on income support (percentage points) -0.5* -2.7*** 0.7*** 0.7*** 0.1 0.4 0.5* n/a n/a
2007-2008 Participants (n=9,114)
Employment earnings ($) -1,560*** 967*** 1,270*** 1,112*** 1,580*** n/a n/a 4,014*** 3,492**
Incidence of employment
(percentage points)
3.8*** 9.3*** 7.7*** 5.3*** 5.6*** n/a n/a n/a n/a
EI benefits ($) -88 -149* -32 -55 -209** n/a n/a -296 -532*
EI weeks (weeks) -0.8*** 0 0.3 0.2 -0.3 n/a n/a 0.2 -0.6
SA benefits ($) 13 -182*** -275*** -200*** -132*** n/a n/a -609*** -781***
Dependence on income support (percentage points) -1.7*** -3.3*** -0.4 -0.2 0.0 n/a n/a n/a n/a
Sub-groups of active claimants
Youth (below 30 years old) – 2002-2005 participants (n=4,506)
Employment earnings ($) -657*** 1,228*** 789*** 544* 1,637* 1,045*** 1,425*** 5,440*** 6,011***
Incidence of employment
(percentage points)
3.8*** 5.5*** 4*** 3.2*** 2.8*** 2.1*** 3.3*** n/a n/a
EI benefits ($) -198*** -475*** -199*** -11 64 174** 167** 194 -479*
EI weeks (weeks) -0.6*** -0.8*** 0 0.3 0.4** 0.6*** 0.6*** 1.7** 0.3
SA benefits ($) -4 -76*** -76*** -57*** -79*** -67*** -59** -338*** -418***
Dependence on income support (percentage points) -3.3*** -4.7*** -1.1** -0.3 -0.3 0.7 0.1 n/a n/a
Older workers (55 years old and over) – 2002-2005 participants (n=1,571)
Employment earnings ($) -608 2,189*** 2,354*** 2,891*** 3,986*** 3,657*** 3,447*** 16,335*** 17,917***
Incidence of employment
(percentage points)
8.2*** 15.6*** 15*** 13.3*** 15.2*** 15.1*** 13.3*** n/a n/a
EI benefits ($) 350** 213 399*** 464*** 468*** 638*** 370** 2,339*** 2,902***
EI weeks (weeks) 1.4*** 2.2*** 2.4*** 2.1*** 2*** 2.4*** 1.7*** 10.6*** 14.2***
SA benefits ($) -35 -106*** -101** -7 -45 -76 -125*** -354* -495*
Dependence on income support (percentage points) -2.3** -2.2* 2.5** 2.9*** 1.9* 3.5*** 1.8 n/a n/a
Long-tenured workers - 2007-2009 participants (n=9,471)
Employment earnings ($) -4,407*** -3,034*** -1,727*** -959*** -225 n/a n/a -2,879*** -10,298***
Incidence of employment
(percentage points)
2.8*** 2.4*** 2.1*** 2.3*** 2.6*** n/a n/a n/a n/a
EI benefits ($) 1,397*** $748*** $13 -$3 $28 n/a n/a $37 $2,182***
EI weeks (weeks) 3.0*** 1.7*** 0.3** 0.2 0.2** n/a n/a 0.6** 5.4***
SA benefits ($) 3 12 1 -4 -8 n/a n/a -12 4
Dependence on income support (percentage points) 5.7*** 4.2*** 1.0*** 0.3 0.4 n/a n/a n/a n/a

Significance level *** 1%; ** 5%; * 10%

Table D3. Incremental impacts for Targeted Wage Subsidies - Former claimants
Indicators In-program period Post-program period Total in- and post-program
Program start year Additional year 1st year 2nd year 3rd year 4th year 5th year Total post
Former claimants
2002-2005 Participants (n=24,523)
Employment earnings ($) 3,237*** 3,564*** 2,134*** 1,850*** 2,017*** 2,173*** 2,180*** 10,353*** 17,155***
Incidence of employment
(percentage points)
14*** 11.1*** 6.9*** 6.2*** 5.7*** 5.5*** 5.7*** n/a n/a
EI benefits ($) 391*** 855*** 679*** 499*** 397*** 349*** 296*** 2,220*** 3,466***
EI weeks (weeks) 1.2*** 3.4*** 2.4*** 1.6*** 1.2*** 1*** 0.7*** 7.1*** 11.8***
SA benefits ($) -481*** -587*** -387*** -306*** -285*** -274*** -266*** -1,519*** -2,587***
Dependence on income support (percentage points) -10.5*** -2.2*** -0.5*** -1.1*** -1.5*** -1.7*** -2.2*** n/a n/a
2007-2008 Participants (n=10,613)
Employment earnings ($) 3,019*** 3,147*** 2,076*** 2,018*** 2,110*** n/a n/a 6,189*** 12,349***
Incidence of employment
(percentage points)
14.1*** 12.5*** 8.2*** 6.8*** 7.1*** n/a n/a n/a n/a
EI benefits ($) 277*** 913*** 697*** 420*** 297*** n/a n/a 1,415*** 2,605***
EI weeks (weeks) 1.1*** 3.9*** 2.8*** 1.6*** 1.0*** n/a n/a 5.4*** 10.4***
SA benefits ($) -493*** -697*** -479*** -404*** -350*** n/a n/a -1,234*** -2,424***
Dependence on income support (percentage points) -8.9*** -1.7*** -0.2 -1.6*** -2.0*** n/a n/a n/a n/a
Sub-groups of former claimants
Youth (below 30 years old) – 2002-2005 participants (n=7,269)
Employment earnings ($) 2,789*** 3,215*** 1,893*** 1,625*** 1,790*** 2,026*** 2,212*** 9,547*** 15,550***
Incidence of employment
(percentage points)
10.3*** 8.2*** 4.5*** 3.9*** 3.5*** 3.9*** 4.5*** n/a n/a
EI benefits ($) 296*** 550*** 473*** 317*** 191*** 217*** 181*** 1,379*** 2,225***
EI weeks (weeks) 1*** 2.4*** 1.9*** 1.1*** 0.6*** 0.6*** 0.4*** 4.5*** 7.9***
SA benefits ($) -498*** -548*** -355*** -280*** -238*** -271*** -271*** -1,415 -2,461***
Dependence on income support (percentage points) -9.6*** -3.2*** -0.8*** -1.4*** -1.8*** -2*** -2.2*** n/a n/a
Older workers (55 years old and over) – 2002-2005 participants (n=1,888)
Employment earnings ($) 2,851*** 2,979*** 1,758*** 1,150** 1,430*** 1,008** 626 5,972*** 11,802***
Incidence of employment
(percentage points)
20.3*** 17.1*** 10.4*** 7.6*** 5.1*** 4.1*** 4.2*** n/a n/a
EI benefits ($) 810*** 1,451*** 999*** 763*** 456*** 293*** 79 2,589*** 4,851***
EI weeks (weeks) 2.5*** 5.8*** 3.3*** 2*** 0.8** -0.1 -1.1*** 4.8*** 13.2***
SA benefits ($) -453*** -569*** -384*** -353*** -348*** -351*** -328*** -1,764*** -2,786***
Dependence on income support (percentage points) -8.7*** 3.1*** 2.8*** 2.1*** 0.3** 0.7 -0.3 n/a n/a
Long-tenured workers - 2007-2009 participants (n=4,883)
Employment earnings ($) 4,912*** 5,236*** 3,704*** 2,956*** 2,958*** n/a n/a 9,608*** 19,748***
Incidence of employment
(percentage points)
10.5*** 10.0*** 6.5*** 5.5*** 5.0*** n/a n/a n/a n/a
EI benefits ($) 367*** 511*** 454*** 214*** 148*** n/a n/a 816*** 1,694***
EI weeks (weeks) 0.7*** 1.6*** 1.2*** 0.4*** 0.1*** n/a n/a 1.7*** 3.9***
SA benefits ($) -310*** -390*** -267*** -226*** -181*** n/a n/a -673*** -1,372***
Dependence on income support (percentage points) -8.1*** -2.0*** -0.8*** -1.9*** -1.9*** n/a n/a n/a n/a

Significance level *** 1%; ** 5%; * 10%

Table D4. Cost-benefit results from the social perspective for Targeted Wage Subsidies
Total costs and benefits over participation (1 to 2 years) and 6 years post-program Active claimants
(n=18,767)
Former claimants
(n=24,523)
Program cost -$6,259 -$6,102
Marginal social costs of public funds -$1,082 -$812
Employment earnings (including participant’s forgone earnings) $6,601 $16,839
Fringe benefit $990 $2,526
Net present value
(By how much do the benefits exceed the costs 6 years after participation?)
$251 $12,452
Cost-benefit ratio
(How much does it cost in EI part II funds to achieve $1 in benefit 6 years after participation?)
$1.00 $0.30
Payback period
(How many years after participation would it take for the benefits to recover the costs?)
5.9 years 2nd program year
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