Evaluation of the Australian Wage Subsidy Special Youth ...

List of Tables and Figures
Figure 1.1: Labour market equilibrium with wage subsidy..................................... 11
Figure 1.2 Employment effect of the subsidy,......................................................... 16
Table 1.3 Brief overview of recent European wage subsidy evidence considered.. 27
Table 2.1 Private Sector Jobstart subsidy weekly rates 1985-1987......................... 37
Table 2.2 Stromback and Dockery (2000) Raw employment outcomes after Jobstart
.................................................................................................................................. 40
Table 2.3 Average junior award rates 1977 to 1981................................................ 46
Table 2.4 SYETP rates, period and target group/eligibility criteria 1976-December
1985.......................................................................................................................... 50
Table 2.5 Key SYETP provisions in 1983/84.......................................................... 55
Table 2.6 SYETP annual expenditure and placements1976/77-1985/86 ................ 58
Table 2.7 Active steps to find work by youths looking for work in July 1980 ....... 59
Table 2.8 Age distribution for CES registrants in NSW 1985-1986 ....................... 62
Table 2.9 Unemployment rate Australia 1981-1990, seasonally adjusted............... 63
Table 2.10 Average duration of unemployment (number of weeks) by age, August
1981-1990 ................................................................................................................ 64
Table 2.11 Unemployment, labour force participation and employment rates,
teenagers and total working age population March 1983 and March 1988............. 66
Table 2.12 Value of unemployment benefits to youths 1983-1987......................... 67
Table 2.13 Smith (1984b) summary of estimates of SYETP................................... 71
Table 2.14 Distribution of SYETP commencements, by age 1980-81.................... 73
Table 2.15 Distribution of SYETP commencements, by age and sex 1980-81....... 74
Table 2.16 Completion of SYETP placement.......................................................... 76
Table 2.17 State usage of programmes in 1980/81.................................................. 77
Table 2.18 Baker (1984) Post-programme full-time employment outcome............ 83
Table 2.19 Baker (1984) Estimated probabilities of labour market outcomes for
participants from the model of employment............................................................ 84
Table 2.20 Rao and Jones (1986) Estimated percent post-programme full-time
continuous employment chances 1981-1983........................................................... 86
Table 2.21 Richardson (1998) Estimated marginal effect of SYETP on employment
from bivariate probit modelling............................................................................... 89
Table 3.1, Part A Employment equation from bivariate probit ............................. 105
Table 3.1 Part B Selection/participation equation of the bivariate probit.............. 108
Table 4.1 Difference between treatment group and comparison group................. 114
Table 4.2 Probit used to estimate propensity score for propensity score matching124
Figure 4.3 Histograms of estimated propensity score prior to matching............... 129
Figure 4.4 Kernel Density of propensity scores distribution for Treated SYETP and
untreated................................................................................................................. 129
Table 4.5 Summary statistics for distribution of propensity scores....................... 131
Table 4.6 Matching results, Single nearest neighbour with replacement, within
caliper..................................................................................................................... 135
Table 4.7 Matching results, All-Within- caliper/Radius with replacement........... 141
Table 4.8 Employment effects of Heckman versus PSM ...................................... 142
Table 5.1 Sample Reduction for ALS List sample ................................................ 153
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