IDEAS home Printed from https://ideas.repec.org/p/iae/iaewps/wp2006n23.html
   My bibliography  Save this paper

Dynamic Properties of Income Support Receipt in Australia

Author

Listed:
  • Yi-Ping Tseng

    (Melbourne Institute of Applied Economic and Social Research, The University of MelbourneTitle: Fiscal and Current Account Balances in a Model with Sticky Prices and Distortionary Taxes)

  • Ha Vu

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Roger Wilkins

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

Using administrative records on Australian income support (welfare) recipients over the period July 1995 to June 2002, we examine dynamic properties of income support receipt and the personal characteristics associated with alternative patterns of receipt. We draw on three concepts: churning – the process of ending a spell on income support and subsequently commencing a new spell; transferring – moving from one payment-type to another within a spell on income support; and Total proportion of Time On income support (TTO) – the proportion of time on income support in a given period. We find that churning and transferring are significant features of income support receipt in Australia. For example, over half of recipients churn within five years of commencing an income support spell, and onefifth make a payment transfer within the same time frame. Examination of the characteristics associated with each of five distinct patterns of receipt reveals substantial differences in patterns by age, family composition, unemployment status, health status, and recent history of income support receipt.

Suggested Citation

  • Yi-Ping Tseng & Ha Vu & Roger Wilkins, 2006. "Dynamic Properties of Income Support Receipt in Australia," Melbourne Institute Working Paper Series wp2006n23, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2006n23
    as

    Download full text from publisher

    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2006n23.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hilary W. Hoynes & Kenneth Y. Chay & Dean Hyslop, 2004. "True State Dependence In Monthly Welfare Participation:A Nonexperimental Analysis," Working Papers 2, University of California, Davis, Department of Economics.
    2. Garry F. Barrett, 2002. "The Dynamics of Participation in the Sole Parent Pension," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 1-17, March.
    3. Gottschalk, Peter & Moffitt, Robert A, 1994. "Welfare Dependence: Concepts, Measures, and Trends," American Economic Review, American Economic Association, vol. 84(2), pages 38-42, May.
    4. Yi‐Ping Tseng & Roger Wilkins, 2003. "Reliance on Income Support in Australia: Prevalence and Persistence," The Economic Record, The Economic Society of Australia, vol. 79(245), pages 196-217, June.
    5. Gong, Xiaodong, 2004. "Transition Patterns for the Welfare Reliance of Low Income Mothers in Australia," IZA Discussion Papers 1047, Institute of Labor Economics (IZA).
    6. Hilary W. Hoynes & Kenneth Y. Chay & Dean Hyslop, 2004. "True State Dependence In Monthly Welfare Participation:A Nonexperimental Analysis," Working Papers 533, University of California, Davis, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Herwig Immervoll & Stephen P. Jenkins & Sebastian Königs, 2015. "Are Recipients of Social Assistance 'Benefit Dependent'?: Concepts, Measurement and Results for Selected Countries," OECD Social, Employment and Migration Working Papers 162, OECD Publishing.
    2. Jeff Borland & David Johnston, 2010. "How Does a Worker's Labour Market History Affect Job Duration?," Melbourne Institute Working Paper Series wp2010n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Elliott Fan & Chris Ryan, 2011. "Reconciling income mobility and welfare persistence," CEPR Discussion Papers 651, Centre for Economic Policy Research, Research School of Economics, Australian National University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elliott Fan & Chris Ryan, 2011. "Reconciling income mobility and welfare persistence," CEPR Discussion Papers 651, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    2. D'Addio, Anna Cristina & Honoré, Bo E., 2010. "Duration Dependence and Timevarying Variables in Discrete Time Duration Models," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 30(2), December.
    3. Atasoy, Sibel & Mills, Bradford F. & Parmeter, Christopher F., 2010. "The Dynamics of Food Stamp Program Participation: A Lagged Dependent Variable Approach," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60963, Agricultural and Applied Economics Association.
    4. Robert G. Gregory & Eva Klug & Prem J. Thapa, 2008. "Cut‐offs, Knock‐ons and Welfare Payment Taper Changes: An Evaluation of the July 2000 Tax and Welfare Changes for Lone Mothers," The Economic Record, The Economic Society of Australia, vol. 84(266), pages 291-309, September.
    5. Herwig Immervoll & Stephen P. Jenkins & Sebastian Königs, 2015. "Are Recipients of Social Assistance 'Benefit Dependent'?: Concepts, Measurement and Results for Selected Countries," OECD Social, Employment and Migration Working Papers 162, OECD Publishing.
    6. Timothy J. Halliday, 2008. "Heterogeneity, state dependence and health," Econometrics Journal, Royal Economic Society, vol. 11(3), pages 499-516, November.
    7. Regina T. Riphahn & Christoph Wunder, 2016. "State dependence in welfare receipt: transitions before and after a reform," Empirical Economics, Springer, vol. 50(4), pages 1303-1329, June.
    8. Manudeep Bhuller & Christian N. Brinch & Sebastian Königs, 2017. "Time Aggregation and State Dependence in Welfare Receipt," Economic Journal, Royal Economic Society, vol. 127(604), pages 1833-1873, September.
    9. Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes, 2006. "What Mean Impacts Miss: Distributional Effects of Welfare Reform Experiments," American Economic Review, American Economic Association, vol. 96(4), pages 988-1012, September.
    10. David Blau, 2003. "Child Care Subsidy Programs," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 443-516, National Bureau of Economic Research, Inc.
    11. Kristin F. Butcher & Robert J. LaLonde, 2006. "Female Offenders Use of Social Welfare Programs Before and After Jail and Prison: Does Prison Cause Welfare Dependency?," Working Papers 0718, Harris School of Public Policy Studies, University of Chicago.
    12. Wunder, Christoph & Riphahn, Regina, 2013. "Welfare transitions before and after reforms of the German welfare system," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79715, Verein für Socialpolitik / German Economic Association.
    13. Mahmud Rice, James & Goodin, Robert E. & Parpo, Antti, 2006. "The Temporal Welfare State: A Crossnational Comparison," Journal of Public Policy, Cambridge University Press, vol. 26(3), pages 195-228, December.
    14. Dalit Contini & Nicola Negri, 2005. "Would Declining Exit Rates from Welfare Provide Evidence of Welfare Dependence in Homogeneous Environments?," LABORatorio R. Revelli Working Papers Series 39, LABORatorio R. Revelli, Centre for Employment Studies.
    15. Sebastian Königs, 2013. "The Dynamics of Social Assistance Benefit Receipt in Germany: State Dependence Before and After the Hartz Reforms," OECD Social, Employment and Migration Working Papers 136, OECD Publishing.
    16. Andrew E Clark & Rong Zhu, 2024. "Taking Back Control? Quasi-Experimental Evidence on the Impact of Retirement on Locus of Control," The Economic Journal, Royal Economic Society, vol. 134(660), pages 1465-1493.
    17. Caplin, Andrew & Gregory, Victoria & Lee, Eungik & Leth-Petersen, Søren & Sæverud, Johan, 2023. "Subjective Earnings Risk," CEPR Discussion Papers 17987, C.E.P.R. Discussion Papers.
      • Andrew Caplin & Victoria Gregory & Eungik Lee & Søren Leth-Petersen & Johan Sæverud, 2023. "Subjective Earnings Risk," NBER Working Papers 31019, National Bureau of Economic Research, Inc.
      • Andrew Caplin & Victoria Gregory & Eungik Lee & Soeren Leth-Petersen & Johan Saeverud, 2023. "Subjective Earnings Risk," CEBI working paper series 23-01, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
      • Andrew Caplin & Victoria Gregory & Eungik Lee & Soren Leth-Petersen & Johan Sæverud, 2023. "Subjective Earnings Risk," Working Papers 2023-003, Federal Reserve Bank of St. Louis, revised 04 Jan 2024.
    18. Timothy M. Smeeding, 2018. "The PSID in Research and Policy," The ANNALS of the American Academy of Political and Social Science, , vol. 680(1), pages 29-47, November.
    19. Luis Ayala & Magdalena Rodríguez, "undated". "Multiple Ocurrence Of Welfare Recipiency: Determinants And Policy Implications," Working Papers 13-04 Classification-JEL , Instituto de Estudios Fiscales.
    20. Hayley Fisher & Anna Zhu, 2019. "The Effect of Changing Financial Incentives on Repartnering," The Economic Journal, Royal Economic Society, vol. 129(623), pages 2833-2866.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iae:iaewps:wp2006n23. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sheri Carnegie (email available below). General contact details of provider: https://edirc.repec.org/data/mimelau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.