Labour supply and income distribution effects of the working income tax benefit: a general equilibrium microsimulation analysis

Table 3 Potential labour supply of social assistance recipients, percent

	Work potential	Persons with long-term disability
Newfoundland and Labrador	78	22
Prince Edward Island	47	53
Nova Scotia	54	46
New Brunswick	76	24
Quebec	64	36
Ontario	47	53
Manitoba	43	57
Saskatchewan	33	67
Alberta	54	46
British Columbia	41	59
Canada	53	47

Source: HRSDC (2010), Social assistance statistical report.
Note: Proportions of work potential are distributed across households to scale down labour supply response (by reducing the maximum time available for work) in order to avoid overestimating the positive effects of the WITB. Consequently, the proportion of families receiving SA benefits accounted for in the simulation (Scenario 2) is reduced from 9 percent to 4.3 percent when the conditions on non-labour incomes and age are respected, and to only 2.3 percent when persons with long-term disability are dropped from the sample.