Comparing and contrasting poverty reduction performance of social welfare programs across jurisdictions in Canada using Data Envelopment Analysis (DEA): an exploratory study of the era of devolution

Evaluation and Program Planning
Nazim N Habibov, Lida Fan

Abstract

In the mid-1990s, the responsibilities to design, implement, and evaluate social welfare programs were transferred from federal to local jurisdictions in many countries of North America and Europe through devolution processes. Devolution has caused the need for a technique to measure and compare the performances of social welfare programs across multiple jurisdictions. This paper utilizes Data Envelopment Analysis (DEA) for a comparison of poverty reduction performances of jurisdictional social welfare programs across Canadian provinces. From the theoretical perspective, findings of this paper demonstrates that DEA is a promising method to evaluate, compare, and benchmark poverty reduction performance across multiple jurisdictions using multiple inputs and outputs. This paper demonstrates that DEA generates easy to comprehend composite rankings of provincial performances, identifies appropriate benchmarks for each inefficient province, and estimates sources and amounts of improvement needed to make the provinces efficient. From a practical perspective the empirical results presented in this paper indicate that Newfoundland, Prince Edwards Island, and Alberta achieve better efficiency in poverty reduction than other provinces. P...Continue Reading

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