Heterogeneous Returns to Active Labour Market Programs for Indigenous Populations

Abstract

Active labour market programs for Indigenous Peoples are common, yet there exists little assessment of their effects. We study the largest active labour market program for Indigenous populations in Canada using rich administrative data on the universe of participants in the program. Two years after participation, average earnings were 6% higher among individuals who participated in high-intensity programs compared to those who only received job counselling or search assistance. However, we find substantial heterogeneity in these effects across legally distinct Indigenous populations. We suggest that understanding the different institutional environments facing Indigenous groups is essential for understanding this heterogeneity.