Laura Lamb

The Impact of Human and Social Capital on Aboriginal Employment Income in Canada

Employment income of Aboriginal Canadians is analysed with the objective of assessing the impact of a broader definition of capital to include the human capital component of health status and social capital on income level. The dataset of the 2006 Aboriginal Peoples Survey is examined using an IV ordered probit model to analyse the factors affecting employment income. The results suggest that social capital and human capital, measured by education and health status, among other socio-demographic factors, influence the level of employment income among Aboriginal Canadians. The findings have implications for public policy.

Does the effectiveness of tax incentives on the decision to give charitable donations vary across donation sectors in Canada

This article explores the effectiveness of tax incentives on the decision to make a charitable donation in Canada and extends the analysis to compare the effectiveness of tax incentives across different types of giving. The data set employed is the 2007 Canada Survey of Giving, Volunteering and Participating (CSGVP), which is analysed using probit and probit selection models. The results imply that public policy can be used to influence the likelihood of making a donation in general and that the degree of influence varies across different donation sectors.

An assessment of the impact of tax incentives relative to socio-economic characteristics on charitable giving in Canada

This research examines the effectiveness of the Canadian tax incentive system for charitable giving while attempting to deal with two persistent methodological problems in past research. The Heckman selection model and the ordered probit model are used to examine the Canadian tax incentive system with 2010 survey data. The results imply that the effect of the tax credit systematically increases with an increase in donation expenditure suggesting that the higher tax credit for larger donations is more effective than the lower tax credit for smaller donations. While the results suggest that the current tax policy is effective, socio-economic characteristics, such as wealth, household income, and university education, appear to have a greater impact on donations.

Associational Capital and Adult Charitable Giving: A Canadian Examination:

This article examines the relationship between associational capital, developed through participation in social networks, and charitable giving behavior in Canada. Empirical models are specified to determine whether a relationship exists between associational capital, formed in youth and adulthood, and secular and religious donation expenditures in adulthood. Tobit regression models are estimated using data from the 2010 Canada Survey of Giving, Volunteering and Participating (CSGVP). The results suggest that the formation of associational capital in youth and adulthood is related to larger donation expenditures, although the source of associational capital and the type of recipient organization matters. It is also found that those who participate in a variety of associations are more likely to make larger donations than those who participate in fewer types of associations. The results provide further insight into charitable giving behavior and have policy implications for public and nonprofit sectors concerned with increasing charitable donations.

Financial exclusion and financial capabilities in Canada

Purpose - The financially excluded are often denied basic financial services from mainstream banking institutions, leading them to high-cost fringe finance institutions (FFIs) such as payday loan companies and pawnshops. While strategies to address financial exclusion often include financial capabilities education, there does not appear to be evidence suggesting such education is an appropriate solution. The purpose of this study is to explore the relationship between financial capability and financial exclusion with survey data collected from the Canadian city of Kamloops located in the southern interior of British Columbia. Design/methodology/approach - This exploratory research addresses the objective with survey data collected on the banking habits and financial capability levels of fringe finance users in a Canadian city. Findings - The results imply that fringe finance users do not have lower levels of financial capability than those who do not use fringe finance, when education and income are controlled. Research limitations/implications - Limitations include the relatively small survey sample of 105 people in one urban center in Canada. Originality/value - While financial literacy is acknowledged to be an important life skill for all members of society, there is no conclusive evidence suggesting it is a solution to financial exclusion. This is the first research to examine the relationship between financial exclusion and fringe finance use in Canada by collecting data on fringe finance users with face-to-face interviews.

Price Elasticities of Charitable Giving across Donation Sectors in Canada: Is the Tax Incentive Effective?

The effectiveness of tax incentives on charitable donation expenditures in Canada is explored, and the analysis is extended to compare the effectiveness across different donation sectors. Price elasticities are estimated with data from the 2007 Canada Survey of Giving, Volunteering and Participating. Results suggest that specific charitable sectors are affected differently by Canada’s tax credit system. The findings have implications for public policy.

Changing preferences for environmental protection: evidence from volunteer behaviour

ABSTRACT Over the past couple of decades, public awareness about environmental issues and concern for environmental protection appears to have increased substantially in Canada as it has in many other countries. This research has two objectives: first, to empirically assess the factors affecting voluntary participation in activities to protect the environment in Canada and to determine if participation has changed from 2000 to 2010, and second, to contemplate whether a change in environmental participation over time might be considered evidence of changing preferences, and thus demand, for environmental protection. Analysis makes use of data from Statistics Canada’s 2000, 2004, 2007 and 2010 Canadian Survey of Giving, Volunteering, and Participating used to estimate two IV probit models. Results suggest the likelihood of participating in environmental protection has increased over time providing a signal that preferences for environmental protection may have increased in Canada. Post-secondary education and social capital developed in youth have the largest impacts on the likelihood of participating. The results are expected to provide valuable information for public policy makers and environmental non-profit organizations.

The Canadian tax-free savings account: a programme to help the rich get richer?

ABSTRACT This article examines participation in the Canadian tax-free savings account (TFSA), implemented in 2009, and its potential impact on wealth inequality in Canada. Data from the 2012 Survey of Financial Security is used to estimate probit, tobit and Heckman probit selection models to test the hypothesis that high-income earners and wealth holders are the most likely recipients of the benefits associated with the TFSA. Empirical results highlight the significance of net worth as a key determinant of both participation in and contribution levels of the TFSA. The results are expected to be relevant to public policy-makers concerned with reducing inequality and those endeavouring to encourage savings for all socio-economic groups.