Evaluation of the Australian Wage Subsidy Special Youth ...

Evaluation of the Australian Wage Subsidy Special Youth ... Evaluation of the Australian Wage Subsidy Special Youth ...

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102 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.

103 effect on employment relative to the base of Church of England. 65 Surprisingly, fair to poor English had a positive effect on employment relative to natural English speakers, however this was a self-assessed question and there might have been a tendency for those with non-English-speaking-background to describe their English optimistically 66 , also the smallest share had fair-poor English so this rests on a small number of cases. Those who gave opinions expressing a negative attitude towards women in work also had lower chances of employment – as this is attitudinal material, this may also reflect other attitudinal features such as a degree of anti-social behaviour. Maternal background in the plant operative occupations also had a negative effect on employment outcomes. In the participation equation, age was negative, indicating that older eligible youths had lower chances of placements – this is in line with the findings in other SYETP literature. The age of the individual was one of the variables excluded from the employment equation. The key variable for the selection was however CEP referrals, and this had a positive impact on placement chances. Other negative effects on placements were from health problems limiting work and childhood background in a country town. Positive effects on placement chances came from having highest qualification of year 12 schooling (relative to year 10 schooling base) and a longer qualifying unemployment period also raised placement chances, in line with the eligibility criteria for SYETP. Maternal background of plant-operative occupation raised chances of a placement, which was opposite to the negative effect it had on employment. 3.5 Discussion It is worth noting, in light ofthe replication standard’, that no additional information was needed to carry out this replication. The replication was achieved using only Richardson (1998) and the supplied data set. For a replication data set to be useful King (1995) notes that it must include all information necessary to replicate the empirical results. As such, 65 But this effect may arise together with the type of schooling being private – there is a greater share of Catholic private schools. 66 The base natural English speaking held the greatest share of the 1283 cases (1161 or 91 per cent), with good English 93 cases or 7 per cent, and fair to poor 29 cases or 2 per cent. In the 104 SYETP cases, only 1 had fair-poor English, while 8 had good English and the rest were native English speakers (unweighted percentages).

103<br />

effect on employment relative to <strong>the</strong> base <strong>of</strong> Church <strong>of</strong> England. 65 Surprisingly, fair to<br />

poor English had a positive effect on employment relative to natural English speakers,<br />

however this was a self-assessed question and <strong>the</strong>re might have been a tendency for those<br />

with non-English-speaking-background to describe <strong>the</strong>ir English optimistically 66 , also <strong>the</strong><br />

smallest share had fair-poor English so this rests on a small number <strong>of</strong> cases. Those who<br />

gave opinions expressing a negative attitude towards women in work also had lower<br />

chances <strong>of</strong> employment – as this is attitudinal material, this may also reflect o<strong>the</strong>r<br />

attitudinal features such as a degree <strong>of</strong> anti-social behaviour. Maternal background in <strong>the</strong><br />

plant operative occupations also had a negative effect on employment outcomes.<br />

In <strong>the</strong> participation equation, age was negative, indicating that older eligible youths had<br />

lower chances <strong>of</strong> placements – this is in line with <strong>the</strong> findings in o<strong>the</strong>r SYETP literature.<br />

The age <strong>of</strong> <strong>the</strong> individual was one <strong>of</strong> <strong>the</strong> variables excluded from <strong>the</strong> employment<br />

equation. The key variable for <strong>the</strong> selection was however CEP referrals, and this had a<br />

positive impact on placement chances. O<strong>the</strong>r negative effects on placements were from<br />

health problems limiting work and childhood background in a country town. Positive<br />

effects on placement chances came from having highest qualification <strong>of</strong> year 12<br />

schooling (relative to year 10 schooling base) and a longer qualifying unemployment<br />

period also raised placement chances, in line with <strong>the</strong> eligibility criteria for SYETP.<br />

Maternal background <strong>of</strong> plant-operative occupation raised chances <strong>of</strong> a placement, which<br />

was opposite to <strong>the</strong> negative effect it had on employment.<br />

3.5 Discussion<br />

It is worth noting, in light <strong>of</strong> ‘<strong>the</strong> replication standard’, that no additional information was<br />

needed to carry out this replication. The replication was achieved using only Richardson<br />

(1998) and <strong>the</strong> supplied data set. For a replication data set to be useful King (1995) notes<br />

that it must include all information necessary to replicate <strong>the</strong> empirical results. As such,<br />

65 But this effect may arise toge<strong>the</strong>r with <strong>the</strong> type <strong>of</strong> schooling being private – <strong>the</strong>re is a greater share <strong>of</strong><br />

Catholic private schools.<br />

66 The base natural English speaking held <strong>the</strong> greatest share <strong>of</strong> <strong>the</strong> 1283 cases (1161 or 91 per cent), with<br />

good English 93 cases or 7 per cent, and fair to poor 29 cases or 2 per cent. In <strong>the</strong> 104 SYETP cases, only 1<br />

had fair-poor English, while 8 had good English and <strong>the</strong> rest were native English speakers (unweighted<br />

percentages).

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