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Unemployment Duration and Inflows onto the Disability Support Pension Program: Evidence from FaCS LDS Data

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  • Lixin Cai
  • Bob Gregory

Abstract

From the administrative data of the Australian Department of Family and Community Services it is found that a large proportion of Disability Support Pension (DSP) recipients transferred from unemployment benefits. Among those who transferred to DSP from unemployment benefits, a large proportion experienced multiple spells of income support receipt prior to the transition and a majority had more than a half-year pre-transition unemployment duration, with the average pre-transition unemployment duration being more than one year. These findings suggest that the unemployment benefit is not simply a'hold-on' benefit for those who experienced the unemployment-DSP transition. This article further examines what factors are associated with the transition. It is found that, among other things, the probability of transition to DSP from unemployment increases with duration on unemployment benefits. Copyright 2005 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

Suggested Citation

  • Lixin Cai & Bob Gregory, 2005. "Unemployment Duration and Inflows onto the Disability Support Pension Program: Evidence from FaCS LDS Data," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 38(3), pages 233-252, September.
  • Handle: RePEc:bla:ausecr:v:38:y:2005:i:3:p:233-252
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    Cited by:

    1. Ian McDonald, 2007. "Where Is Full Employment?," Department of Economics - Working Papers Series 1011, The University of Melbourne.
    2. repec:bla:ecorec:v:93:y:2017:i:301:p:238-254 is not listed on IDEAS
    3. Kadir Atalay & Garry F. Barrett, 2015. "The Impact of Age Pension Eligibility Age on Retirement and Program Dependence: Evidence from an Australian Experiment," The Review of Economics and Statistics, MIT Press, vol. 97(1), pages 71-87, March.
    4. Productivity Commission, 2007. "Potential Benefits of the National Reform Agenda," Research Papers 0701, Productivity Commission, Government of Australia.
    5. Lixin Cai & Ha Vu & Roger Wilkins, 2007. "Disability Support Pension Recipients: Who Gets Off (and Stays Off) Payments?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 40(1), pages 37-61, March.

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