Examining the Effectiveness of INAC Funding

Abstract

The Aboriginal population in Canada performs significantly below the national average in socioeconomic measures such as education, employment, and income. Indigenous and Northern Affairs Canada spent $5.6 billion in 2006 and $8.4 billion in 2015 towards improving these factors. This paper examines the relationship between INAC funding and socioeconomic outcomes using a regression discontinuity design (RDD). I utilize the border between two geographical zones, with First Nations bands located above 50 degrees latitude receiving more funding than First Nations bands below. Observations were categorized along two metrics: (i) within 50km, 100km, or 150km from the boundary, and (ii) divided into 200km or 400km segments along the boundary. On average, First Nations bands above 50° latitude receive $6,400,153 and bands below 50° latitude receive $4,583,365. The results show that there is no significant relationship between INAC funding level and individual income level, high-school attainment rate, unemployment rate and number of households requiring minor repairs.