Labour Supply and Welfare Participation in Australian Two-Adult Households: Comparing 1986/87 with 1994/95
We estimate a simultaneous discrete choice model for welfare participation and labour supply of two-adult households in Australia using the Income and Housing Costs Survey of 1994/1995. Welfare participation is assumed to have a positive indirect effect (through income) and a negative direct effect on utility. This approach allows for non-participation of eligible people. The results are compared with those from an earlier study using the 1986/1987 Income Distribution Survey. The differences are discussed in the context of policy changes affecting welfare payments and of behavioural changes as they emerge from the models. The results indicate that there is evidence of a significant disutility associated with welfare participation in both years. We also find that a change in the benefit withdrawal rate or the maximum benefit level does not seem to have a large effect on the labour supply of either adult.
|Date of creation:||Dec 1999|
|Date of revision:|
|Contact details of provider:|| Postal: PO Box 14428, Melbourne, Victoria, 8001|
Phone: 03 9919 1877
Web page: http://www.copsmodels.com/about.htm
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:cop:wpaper:bp-34. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Horridge)
If references are entirely missing, you can add them using this form.