Evaluation of the Australian Wage Subsidy Special Youth ...

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which the employment equation was also reported in Richardson (1998) Table3, p16.
These are identically specified to the bivariate probit, but of course are separate and
independent. When compared to the Richardson estimates, these simple probit replicates
are identical. Additionally, the means for all the variables were calculated and found to
match those of Richardson 1998 Table 1 (these can be seen later in Chapter 5, for
example Table 5.2). As the simpler replication exercises produced results identical to
those of Richardson (1998), the small discrepancies observed are thought to arise from
minor differences in the estimation algorithm. These analyses are conducted in STATA
7.0, the Richardson (1998) analyses were in Stata 5.0, in later versions algorithm changes
have been made to the code for implementing the bivariate probit.
It is useful to briefly discuss the factors found to impact on employment and participation
in SYETP. Although this is a replication, the results of the estimation are of interest for
comparison with later results. For reference to the variable definition, see the data
appendix. Only statistically significant coefficients are discussed.
In the employment equation, Table 3.1 part a column 2, SYETP has a positive coefficient,
indicating a positive effect upon employment chances, while other positive effects on
employment were associated with the partner being in employment, having attended a
private school, higher post-school qualifications and having left school in year 11 relative
to the base of year 10 highest qualification 64 , and having held a job for 3 years prior to
1984. These all represent higher levels of human capital and work experience, and greater
labour supply and are in the direction they are expected to work. Negative effects on
employment chances were found for women with children, those with health limiting
their work, those with longer pre-programme unemployment, those who had other
programme experience. Of the more unusual variables, Catholic religion had a positive
64 Note that in the Australian schooling system, a certificate is achieved in year 10 and then another in year
12 after successful completion of the study program. Those who left in year 10 could include those who
achieved the certificate or left during the year prior to obtaining the certificate or failed the certificate
studies. Those who left in year 11 had definitely obtained their year 10 certificate and so qualified to
continue their studies. Each Australian state has a different system of education and each certificate has a
different name and required studies.