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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