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An Australian Model for Labour Supply and Welfare Participation in Two-Adult Households Author info | Abstract | Publisher info | Download info | Related research | Statistics Guyonne Kalb
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In this paper, a simultaneous discrete choice model for welfare participation and labour supply of two-adult households is estimated. It is assumed that in addition to the indirect effect of welfare participation on utility, welfare participation also has a direct effect. The resulting net effect is unknown and may depend on personal characteristics. To account for the direct effect of welfare participation on utility, a parameter to measure the disutility associated with welfare participation is included in the utility function. This model allows for the fact that not all eligible people are participating in welfare.
The results indicate that there is evidence of a significant disutility associated with welfare participation. From simulations, it is found 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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Paper provided by University of New South Wales, Social Policy Research Centre in its series Discussion Papers with number
0082.
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Length: 50 pages
Date of creation: Jun 1998Date of revision:
Handle: RePEc:wop:sprcdp:0082Contact details of provider: Postal: Sydney 2052 Phone: +61 2 9385 3833 Fax: +61 2 9385 1049 Email: Web page: http://www.sprc.unsw.edu.au/dp/ More information through EDIRC
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Keane, Michael & Moffitt, Robert, 1998.
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Moffitt, Robert, 1983.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Guyonne Kalb & Jenny Williams, 2001.
"Delinquency and Gender ,"
Melbourne Institute Working Paper Series
wp2001n13, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
[Downloadable!]
Other versions: Peter B. Dixon & Maureen T. Rimmer, 2005.
"The Displacement Effect of Labour-Market Programs: Estimates from the MONASH Model ,"
Centre of Policy Studies/IMPACT Centre Working Papers
g-154, Monash University, Centre of Policy Studies/IMPACT Centre.
[Downloadable!]
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