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Welfare Reform, Work and the Labour Market

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  • Peter Saunders

Abstract

The welfare reform debate is proceeding against a background of high unemployment and rising inequality. In Australia, the blueprint for reform of the social security system developed by the McClure Report is built around the notion of mutual obligation — the idea that those who receive support from government should be required to ‘give something back’. Public opinion is supportive of requiring mutual obligation of some groups of the unemployed, but it also supports the view that solving unemployment generally is the government's responsibility. Although welfare reforms introduced in the US and UK have reduced the welfare rolls, their impact on wages and the labour market must also be considered. If welfare reform in Australia is to avoid the low wages and extreme poverty that are features of the US, welfare reform will need to be accompanied by reform of the labour market.

Suggested Citation

  • Peter Saunders, 2001. "Welfare Reform, Work and the Labour Market," The Economic and Labour Relations Review, , vol. 12(1), pages 151-164, June.
    • Handle: RePEc:sae:ecolab:v:12:y:2001:i:1:p:151-164
    DOI: 10.1177/103530460101200109
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    References listed on IDEAS

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    1. 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.
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    4. Andrzej Grodner & Timothy Smeeding, 2000. "Changing Income Inequality in OECD Countries: Updated Results from the Luxembourg Income Study (LIS)," LIS Working papers 252, LIS Cross-National Data Center in Luxembourg.
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