Evaluation of the Australian Wage Subsidy Special Youth ...

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posited that that such sensitivity analysis, comparing bivariate probit and PSM where the
data can lend support to both models, should be provided to enhance evaluation results
and provide a form of confidence interval for model selection, and so account for the
statistical modelling uncertainty.
This exploration has confirmed some relationships suggested in the literature and
revealed some new insights into SYETP and wage subsidy employment effects. The
research challenges orthodox evaluation methods by applying not one potentially
appropriate selection approach, and underlying assumption about observables and
unobservables, but both. The benefits are informed overview of the role of the
assumption to the evaluation outcome. To the extent that the data allows both methods to
be attempted, such as sufficiently extensive data on characteristics of employment and
participation, as well as variables that can act as instruments, this allows the conclusion
that this approach should be adopted wherever possible. Deliberative attempts were made
to constructively account for data and modelling issues. The constraints of the nonexperimental
data limit the conclusions for SYETP, as without a benchmark from
experimental data, it is not possible to further choose between the model of the Heckman
and PSM methods. Although unsatisfying to a small extent, the remaining limitations of
this research can inform further work on the evaluation of labour market programmes
such as SYETP.