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Dynamic Properties of Income Support Receipt in Australia

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  • Yi-Ping Tseng

    ()
    (Melbourne Institute of Applied Economic and Social Research, The University of MelbourneTitle: Fiscal and Current Account Balances in a Model with Sticky Prices and Distortionary Taxes)

  • Ha Vu

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Roger Wilkins

    ()
    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

Using administrative records on Australian income support (welfare) recipients over the period July 1995 to June 2002, we examine dynamic properties of income support receipt and the personal characteristics associated with alternative patterns of receipt. We draw on three concepts: churning – the process of ending a spell on income support and subsequently commencing a new spell; transferring – moving from one payment-type to another within a spell on income support; and Total proportion of Time On income support (TTO) – the proportion of time on income support in a given period. We find that churning and transferring are significant features of income support receipt in Australia. For example, over half of recipients churn within five years of commencing an income support spell, and onefifth make a payment transfer within the same time frame. Examination of the characteristics associated with each of five distinct patterns of receipt reveals substantial differences in patterns by age, family composition, unemployment status, health status, and recent history of income support receipt.

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Bibliographic Info

Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2006n23.

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Length: 35 pages
Date of creation: Oct 2006
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Handle: RePEc:iae:iaewps:wp2006n23

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  1. Yi-Ping Tseng & Roger Wilkins, 2003. "Reliance on Income Support in Australia: Prevalence and Persistence," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 79(245), pages 196-217, 06.
  2. Gong, Xiaodong, 2004. "Transition Patterns for the Welfare Reliance of Low Income Mothers in Australia," IZA Discussion Papers 1047, Institute for the Study of Labor (IZA).
  3. Barrett, Garry F, 2002. "The Dynamics of Participation in the Sole Parent Pension," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 78(240), pages 1-17, March.
  4. Hilary W. Hoynes & Kenneth Y. Chay & Dean Hyslop, 2004. "True State Dependence In Monthly Welfare Participation:A Nonexperimental Analysis," Working Papers, University of California, Davis, Department of Economics 533, University of California, Davis, Department of Economics.
  5. Gottschalk, Peter & Moffitt, Robert A, 1994. "Welfare Dependence: Concepts, Measures, and Trends," American Economic Review, American Economic Association, American Economic Association, vol. 84(2), pages 38-42, May.
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Cited by:
  1. Elliott Fan & Chris Ryan, 2011. "Reconciling income mobility and welfare persistence," CEPR Discussion Papers 651, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  2. Jeff Borland & David Johnston, 2010. "How Does a Worker's Labour Market History Affect Job Duration?," Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne wp2010n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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