The Displacement Effect of Labour-Market Programs: MONASH Analysis
AbstractA key question concerning labour-market programs is the extent to which they generate jobs for their target group at the expense of others. This effect is measured by displacement percentages. We describe a version of the MONASH model designed to quantify the effects of labour-market programs. Our simulation results suggest that: (i) labour-market programs can generate significant long-run increases in employment; (ii) displacement percentages depend on how a labour-market program affects the income trade-off faced by target and non-target groups between work and non-work; and (iii) displacement percentages are larger in the short run than in the long run. Copyright © 2006 The Economic Society of Australia.
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Bibliographic InfoArticle provided by The Economic Society of Australia in its journal Economic Record.
Volume (Year): 82 (2006)
Issue (Month): s1 (09)
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