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

Author

Listed:
  • Peter Saunders

    (University of New South Wales)

  • Judith Brown

    (The Australian National University)

Abstract

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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    References listed on IDEAS

    as
    1. Burgess, John & Mitchell, William F. & O'Brien, Duncan J. & Watts, Martin J., 2000. "The developing workfare policy in Australia: a critical assessment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(2), pages 173-188.
    2. Howard S. Bloom & Carolyn J. Hill & James A. Riccio, 2003. "Linking program implementation and effectiveness: Lessons from a pooled sample of welfare-to-work experiments," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(4), pages 551-575.
    3. Linda L. Richardson, 2002. "Impact of the Mutual Obligation Initiative on the Exit Behaviour of Unemployment Benefit Recipients: The Threat of Additional Activities," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 406-421, December.
    4. Tony Eardley & Peter Saunders & Ceri Evans, 2000. "Community Attitudes Towards Unemployment, Activity Testing and Mutual Obligation," Discussion Papers 00107, University of New South Wales, Social Policy Research Centre.
    5. Richardson, Linda L, 2002. "Impact of the Mutual Obligation Initiative on the Exit Behaviour of Unemployment Benefit Recipients: The Threat of Additional Activities," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 406-421, December.
    6. Jenny Chalmers & Guyonne Kalb, 2001. "Moving from Unemployment to Permanent Employment: Could a Casual Job Accelerate the Transition?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(4), pages 415-436, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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

    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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