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The Relationship between Labor Market Conditions and Welfare Receipt in Australia: A Stock-Flow Analysis

This paper estimates the role of labor market conditions in the recent decline in welfare receipt among the working age population in Australia. A stock-flow model is used, which involves modeling the underlying welfare flows and using the results to simulate the effect of labor market conditions on the welfare stock. The simulation analysis suggests that improvements in the labor market explain the majority of the decline. A range of robustness checks are undertaken including using alternative levels of geographic disaggregation to deal with likely measurement error in labor market data.

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Paper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2012-573.

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Length: 44 Pages
Date of creation: Apr 2012
Date of revision:
Handle: RePEc:acb:cbeeco:2012-573
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  1. Blank, Rebecca M., 1989. "Analyzing the length of welfare spells," Journal of Public Economics, Elsevier, vol. 39(3), pages 245-273, August.
  2. Rebecca M. Blank, 2001. "What Causes Public Assistance Caseloads to Grow?," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 85-118.
  3. repec:ese:iserwp:2008-34 is not listed on IDEAS
  4. Lixin Cai & Guyonne Kalb & Yi-Ping Tseng & Hong Ha Vu, 2005. "The Effect of Financial Incentives on Labour Supply: Evidence for Sole Parents from Microsimulation and Quasi-Experimental Evaluation," Melbourne Institute Working Paper Series wp2005n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  5. Cappellari, Lorenzo & Jenkins, Stephen P., 2008. "The Dynamics of Social Assistance Receipt: Measurement and Modelling Issues, with an Application to Britain," IZA Discussion Papers 3765, Institute for the Study of Labor (IZA).
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