Labour Supply and Welfare Participation in Australian Two-Adult Households: Comparing 1986/87 with 1994/95
AbstractWe estimate a simultaneous discrete choice model for welfare participation and labour supply of two-adult households in Australia using the Income and Housing Costs Survey of 1994/1995. Welfare participation is assumed to have a positive indirect effect (through income) and a negative direct effect on utility. This approach allows for non-participation of eligible people. The results are compared with those from an earlier study using the 1986/1987 Income Distribution Survey. The differences are discussed in the context of policy changes affecting welfare payments and of behavioural changes as they emerge from the models. The results indicate that there is evidence of a significant disutility associated with welfare participation in both years. We also find that a change in the benefit withdrawal rate or the maximum benefit level does not seem to have a large effect on the labour supply of either adult.
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Bibliographic InfoPaper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number bp-34.
Date of creation: Dec 1999
Date of revision:
Find related papers by JEL classification:
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
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- Lee, Wang-Sheng & Oguzoglu, Umut, 2007.
"Are Youths on Income Support Less Happy? Evidence from Australia,"
IZA Discussion Papers
2709, Institute for the Study of Labor (IZA).
- Wang-Sheng Lee & Umut Oguzoglu, 2007. "Are Youths on Income Support Less Happy? Evidence from Australia," Melbourne Institute Working Paper Series wp2007n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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