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Evaluation of the Australian Wage Subsidy Special Youth ...

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152<br />

Richardson (1998) is <strong>the</strong>n extended here, by estimating <strong>the</strong> attrition <strong>of</strong> <strong>the</strong> <strong>Australian</strong><br />

Longitudinal Survey and constructing weights to reduce <strong>the</strong> resultant bias. This also<br />

serves as a test <strong>of</strong> <strong>the</strong> impact <strong>of</strong> attrition bias on <strong>the</strong> estimated results.<br />

5.5 Examining <strong>the</strong> role <strong>of</strong> attrition in <strong>the</strong> ALS and in modelling <strong>of</strong> <strong>the</strong> SYETP<br />

employment effect<br />

To assess <strong>the</strong> issue <strong>of</strong> attrition bias a set <strong>of</strong> analyses are conducted, drawing on <strong>the</strong> tests<br />

<strong>of</strong> Fitzgerald et al. (1998a). Firstly, <strong>the</strong> univariate effects <strong>of</strong> attrition upon means are<br />

examined. The Fitzgerald et al. (1998a) framework for <strong>the</strong> statistical analysis <strong>of</strong> attrition<br />

bias applied here focuses upon sample attrition which results in selection on observables.<br />

The case for attrition due to observables is examined for <strong>the</strong> ALS by investigating <strong>the</strong><br />

observed means. The effects <strong>of</strong> attrition upon <strong>the</strong> models <strong>of</strong> SYETP participation are also<br />

considered. The probability <strong>of</strong> attrition is <strong>the</strong>n modelled using <strong>the</strong> probit. Weighting<br />

effects upon <strong>the</strong> model <strong>of</strong> employment outcomes for <strong>the</strong> SYETP programme are<br />

additionally explored.<br />

5.5.1 Extent <strong>of</strong> sample reduction<br />

The ALS list sample was constructed from administrative records <strong>of</strong> persons aged 15-24<br />

on 1 September 1984. The sample was selected based on those registered with <strong>the</strong><br />

Commonwealth Employment Service <strong>of</strong>fices throughout Australia who were unemployed<br />

and seeking full-time work for three months or more at <strong>the</strong> time <strong>of</strong> selection in June 1984.<br />

The original sample had 2998 cases, and <strong>the</strong> first survey collected interviews from 2,403<br />

cases.<br />

Interviews for <strong>the</strong> first survey were conducted between September 1984 and November<br />

1984. The survey was repeated in each <strong>of</strong> <strong>the</strong> later years 1985, 1986 and 1987, following<br />

up <strong>the</strong> same people with whom interviews were conducted in 1984. In 1985 1,910<br />

interviews were conducted in <strong>the</strong> months June to October, in 1986 1,711 interviews were<br />

collected between September and November, and in 1987 1,518 interviews repeated

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