The Social Assistance Program recipients with a temporary limited health capacity benefit from a monthly payment of $828. The Ministry also proposes a social solidarity benefit of up to $1,088 for those who have a permanent limited capacity that prevents them from maintaining employment.

We aim to analyze the determinants of the transition between these two programs, and to find out if it is driven by an economic rationality or by functional limitations. We notice that this shift depends mostly on the recipients’ health condition, especially on their age. Furthermore, these recipients seem to choose to protect their professional integration over the financial assistance provided by the Ministry. We therefore consider that a marginal increase of the employment-assistance allowance reduces by a 1.5 percentage point the probability of transferring to the Social Solidarity Program.

Forthcoming publication.