Poverty Reduction and Social Security in Canada from Mixed to Neo-Liberal Welfare Regimes

Drawing on two nationally representative household surveys, this paper investigates changes in poverty reduction effectiveness of social programs in Canada caused by dismantling the mixed welfare regime in favor of a liberal welfare regime. We measure and explain how the social security system affects poverty before and after regime changes and what types of social security programs become more effective in poverty reduction. The paper shows that, as a result of regime change, overall poverty reduction of social security declined. However, the decline was fairly modest considering the magnitude of the reforms. Favorable economic conditions played an important role in mitigating negative consequences of the reforms.