Newly landed immigrant couples in Canada with young children and some employment income are significantly more likely to receive the Canada child benefit (CCB) than those without employment income, according to a recent study by Statistics Canada and the Canada Revenue Agency. The research examined CCB take-up rates among immigrant couples who arrived in Canada between 2016 and 2019.
The study found that newly landed couples with employment income in the year following their arrival were much more likely to receive the CCB compared to those without employment income. Couples without employment income but with at least one spouse filing a T1 income tax return also had higher CCB take-up rates than those with no tax records at all. “Compositional effects do not explain these differences,” the authors noted.
If non-recipient families without employment income had received the CCB, their low-income rates would have dropped by 1 to 2 percentage points, from a baseline rate of 61%, the study indicated.
The study was conducted by Tahsin Mehdi, Ping Ching Winnie Chan, René Morissette, and Rubab Arim from the Social Analysis and Modelling Division at Statistics Canada, along with Ying Gai and Jason Raymond from the Strategic Research and Performance Division at the Canada Revenue Agency. It was funded by the Canada Revenue Agency.
The research utilized data from the Longitudinal Immigration Database, T1 personal master file, T4 Statement of Remuneration Paid, and monthly CCB files. By integrating these data sources, the study aimed to provide a more accurate measurement of CCB recipients among newly landed immigrant families.
The analysis also addressed concerns regarding temporary international emigration by focusing on couples where at least one spouse received paid employment income in Canada or filed T1 income tax forms. These couples were less likely to have resided abroad temporarily, making them more likely to meet the residency criteria for the CCB.
In the year following landing, 79% to 85% of couples received the CCB, with higher take-up rates among those with some employment income. “Take-up rates of more than 90% were observed among those with some employment income,” the study noted. In contrast, couples with no T1 or T4 records had take-up rates of less than 10%.
The study also highlighted differences in CCB take-up rates across various demographic and immigration categories. Refugee couples had the highest take-up rates, while Federal Skilled Worker Program couples had the lowest among the top three immigration classes.
The findings underscore the importance of employment income and tax-filing in accessing government benefits like the CCB. The study’s authors suggest that policies aimed at increasing benefit take-up among newly landed immigrants should consider these factors.
Key points
- Newly landed immigrant couples with employment income are more likely to receive the Canada child benefit.
- The study found significant differences in CCB take-up rates based on employment and tax-filing status.
- Refugee couples had the highest take-up rates, while Federal Skilled Worker Program couples had the lowest among the top three immigration classes.
- The study was conducted by Statistics Canada and the Canada Revenue Agency and utilized multiple data sources for a comprehensive analysis.