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Labour Market Conditions, Applications and Grants of disability support Pension (DSP) in Australia


  • Peter Saunders

    () (University of New South Wales)

  • Judith Brown

    (The Australian National University)


This paper uses data from the General Customer Survey (GCS) to examine patterns of movement off the benefit system among recipients of Newstart Allowance and Parenting Payment. The analysis covers the first three waves of the GCS, which commenced in March 2000 and follows recipients after they left the welfare system. Survey participants are separated into welfare system ‘Stayers’ and ‘Leavers’ and the characteristics of these two groups are examined in an attempt to identify the factors that differ between them. The analysis suggests that a number of personal attributes are important, including age, gender, the presence of young children and benefit duration. These are supplemented by other variables, including the level of earnings at wave I, use of the internet to find work, housing costs, non-housing debt and assessment of location. Some support is also found for the role of participation in an Activity Agreement, although the impact of this variable is compounded with that of age. There is also some weak support for the stepping stone hypothesis, in that participation in study or volunteer work are both positively associated with subsequent movement off of the welfare system.

Suggested Citation

  • Peter Saunders & Judith Brown, 2004. "Labour Market Conditions, Applications and Grants of disability support Pension (DSP) in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(3), pages 395-410, September.
  • Handle: RePEc:ozl:journl:v:7:y:2004:i:3:p:395-410

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    More about this item


    Social Security and Public Pensions Mobility; Unemployment; and Vacancies: General Unemployment Insurance; Severance Pay; Plant Closings;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings


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