Geranda Notten (Graduate School of Public and International Affairs, University of Ottawa)
Rich countries increasingly rely on income-testing and their income-tax system as part of their efforts to target both cash and in-kind transfers to recipients. Measuring the effectiveness of in-kind transfers is challenging because the metric used to determine eligibility (income) may not or only partially capture the program’s effect as in-kind transfers reduce the need to spend rather than increase their income. This research provides important insights for policymakers by demonstrating material well-being effects that are missed entirely or are misestimated by income indicators. This research measures the effects of the Canadian Dental Care Program (CDCP) on material well-being using a material deprivation scale that captures (changes in) material outcomes. The CDCP partially covers dental care costs of households with an income below $90,000 who have no dental care coverage. Canada’s dental care program was rolled out gradually and initially focused on seniors (Government of Canada, n.d.-b). The research uses nationally representative microdata on material deprivation, household income, and other respondent and household characteristics collected annually in the spring between 2023 and 2025. The treatment group are senior respondents aged 65 and up and the control group are working age respondents aged 25-64 not living with children under the age of 18. Using a difference-in-difference estimator, three effects are estimated, namely changes in material deprivation status, the number of deprivations, and the dental deprivation item status. Findings: This is ongoing research. Descriptive statistics show considerably stronger improvements in material well-being of seniors compared to other age groups.