Evaluation of the Australian Wage Subsidy Special Youth ...

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who participated. It was concluded that the AWSS was used mostly by small firms, and
those firms used it for the recruitment of low wage and lower skilled workers. No
evidence of churning was found, where employers lay off placements when the subsidy
expired, as most placements that completed the subsidised period were retained. However,
it was also found that most placements were at the expense of unsubsidised employment
of other similar workers. There was no modelling of employment.
2.1.2 ‘General Training Assistance On-the-Job-Training’
The ‘General Training Assistance On-the-Job-Training’ [GTA-OTJ] was also available to
youths at the same time as SYETP in 1983, but in contrast was only 9.9 per cent of all
placements. The GTA was a highly flexible programme, which also appears to have been
highly discretional. This was described as an 'age tiered' wage subsidy to unemployed for
on-the-job training in ‘occupations in demand’, with a subsidy in 1983 of $50.80 to
juniors and $69.30 for adult award rates. It was available to all ages for those ‘at risk’,
with eligible positions based on trade or non-trade skills which were subject to ‘labour
market demand’ – this was tested on departmental criteria so that CES officers instigated
a GTA position if ‘no suitably experienced qualified person is available when employers
lodge vacancies’ (BLMR (1983) p 7 Table 1.3, footnote (c)). The period of assistance
‘varied according to occupational skill level’. This programme likely best falls into the
category of ‘special assistance’, as it was not generally available. Officially, it was not
considered a true wage subsidy. It was pointed out that the primary purpose was training
workers with past work experience in situations where there were no workers with the
requisite skills, and it was not considered to be a marginal stock subsidy programme
(DEYA (1983): 166). However, despite the unusual targeting, it clearly fits within the
definition of wage subsidy outlined in section 1.2.
GTA-OTJ was analysed alongside SYETP and other programmes and generally found to
have a positive impact on post-programme employment. Each of these analyses is treated
in depth later in considering SYETP evaluation, and so further details and critique of the
methods can be found there. BLMR (1983) used administrative records for
commencements flowing onto all government programmes to youths in 1980-81 and