Evaluation of the Australian Wage Subsidy Special Youth ...
Evaluation of the Australian Wage Subsidy Special Youth ... Evaluation of the Australian Wage Subsidy Special Youth ...
34 showed employment entry flows for GTA-OTJ, but there was no modelling of employment outcomes. Stretton (1982, 1984) found that GTA-OTJ performed better on post-programme employment than training in EPUY 6 , but was no different to SYETP. Baker (1984) also found that GTA-OTJ performed better than EPUY, and no different to SYETP. Before modelling, it was found that 58.9 per cent of GTA were in continuous full-time work, made up of 45.4 per cent retained in their placement job and 13.5 per cent not retained, with 29.8 per cent having non-continuous full-time work, while the estimated probability for continuous full-time employment after the programme for those with 17 weeks of unemployment was 0.569 (Baker (1984) p19 Table 5.2, p47 Table A8, p48 Table A10). Rao and Jones (1986) estimated post-programme full-time continuous employment chances for GTA-OTJ 1981-1983 relative to their quasi-control group as being 59.8 per cent for the least disadvantaged and 14.6 per cent for the most disadvantaged. This positive employment effect was greater than that found for SYETP. 2.1.3 Jobstart Jobstart began in December 1985, when SYETP and the AWSS ended by being subsumed into the new Jobstart programme as all labour market programmes were restructured (Ross (1988) p34 footnote 9). The specialist programmes, ‘Special Needs Job Sector Subsidy’ and ‘Disabled on-the-job subsidy’, were also merged into Jobstart (Kesteven (1987): 45). All aspects of SYETP, including the Commonwealth SYETP, as described later in the section about SYETP, turned up as components in Jobstart. At inception, Jobstart had two key components, private sector Jobstart and Commonwealth Jobstart. The ‘Commonwealth Work Experience programme’ was identical to Commonwealth SYETP – it lasted for 17 weeks subsidy, and was limited to 15-24 year olds, with the department fully reimbursed for the wage paid to the placement. However, in May 1987 the Commonwealth component ceased. After this, Private Sector Jobstart became synonymous with the term Jobstart. Eligible groups for Jobstart were divided into two: Jobstart basic rates applied to those unemployed for 6 of the last 9 months, while Jobstart Special rates applied to those long- 6 Education Programme for Unemployed Youth; an Australian training program part of NEAT; consisting of courses aimed to improve basic literacy, numeracy and social skills.
35 term unemployed for over 12 of the last 15 months, or the disadvantaged groups listed. The designated disadvantaged groups were “...disabled, sole supporting parents, migrants with English language difficulties, Aborigines” (Kesteven (1987): 45). The positions were required to be full-time, but with exceptions possible for the disadvantaged groups, and available for 26 weeks continuous employment. Job vacancies had to be notified with the CES, and at least the Award wage 7 was paid to placements. There was a special Jobstart self-service board with all wage subsidy jobs displayed on it, and the CES could also give a card called, a ‘self-canvassing card’, that could be shown to employers at the job interview (Victorian State Office (1985) p7 and DEET (1994) p38). Jobstart was described as a general wage subsidy scheme, where employers received subsidy for placements where the rate varied with age. Private Sector Jobstart subsidy rates for 1985-87 are shown below in Table 2.1. The Jobstart Special rate was higher than the basic rate, and rates increased with age. In 1985/86 35,098 placements were approved in private sector Jobstart, with expenditure for the year at $18,787 million (Kesteven (1987): 46). Jobstart was expanded considerably during the Australian recession, but was more commonly referred to within the Job Compact package. After 1989, it was part of the Job Compact along with the National Training Wage [NTW]. The NTW was a training wage but was “...to be supplemented by subsidies to entice employers to provide training” (OECD (2001): 198). The Job Compact was part of the Working Nation package of initiatives, and centred on an offer of 6-12 months job placement in the private sector, but usually 9 months, to all who had been in receipt of benefits for more than 18 months (OECD (2001): 198). This eligibility required a longer period of unemployment than in 1987, and so the targeting of the programme was tightened in this new form, however against this, the subsidy length was extended to 12 months. This had strong effects on the programme. There were issues of low take-up. Sheen and Trethewey (1991) p38 point 7 Australia has extensive union wage agreements, which specify a complex system of minimum wages. These are termed Award Wages.
- Page 1: i Evaluation of the Australian Wage
- Page 5 and 6: v Declaration I hereby declare that
- Page 7 and 8: in method and assumptions. The orth
- Page 9 and 10: 3.3 Data and variables used for est
- Page 11 and 12: List of Tables and Figures Figure 1
- Page 13 and 14: Table A2.0b Univariate Probit of pa
- Page 15 and 16: xv Abstract The job subsidy Special
- Page 17 and 18: 1 1: Wage subsidy theory and evalua
- Page 19 and 20: 3 programs of providing benefits an
- Page 21 and 22: 5 The empirical methods used for th
- Page 23 and 24: 7 how the outcomes from these metho
- Page 25 and 26: 9 employment effect could be mainly
- Page 27 and 28: 11 Real Wage Employment Figure 1.1:
- Page 29 and 30: 13 are two types of unemployment, s
- Page 31 and 32: 15 Real wages are predetermined whe
- Page 33 and 34: 17 Vella (1998), Heckman, Lalonde a
- Page 35 and 36: 19 Each individual has two potentia
- Page 37 and 38: 21 this case, if there was no data
- Page 39 and 40: 23 correlation for the error of the
- Page 41 and 42: 25 Table 1.3 collects together some
- Page 43 and 44: 27 Table 1.3 Brief overview of rece
- Page 45 and 46: 29 necessarily brief. Then, the evi
- Page 47 and 48: 31 limited applications, such as fo
- Page 49: 33 who participated. It was conclud
- Page 53 and 54: 37 importance of the subsidy second
- Page 55 and 56: 39 differences in characteristics t
- Page 57 and 58: 41 Matching methods are theoretical
- Page 59 and 60: 43 2.2 SYETP implementation As SYET
- Page 61 and 62: 45 In July1978, the subsidy was cal
- Page 63 and 64: 47 In January 1979, variations were
- Page 65 and 66: 49 benefits were paid at a slightly
- Page 67 and 68: 51 2.2.3 SYETP operation Earlier re
- Page 69 and 70: 53 ceiling constraints’ applied t
- Page 71 and 72: 55 Award Conditions for employment
- Page 73 and 74: 57 Harris (2001) claims that during
- Page 75 and 76: 59 display boards listed details of
- Page 77 and 78: 61 restriction was used. If there w
- Page 79 and 80: 63 to the end of the 1980’s. An o
- Page 81 and 82: 65 for teens overall had risen, emp
- Page 83 and 84: 67 for Australia using data from th
- Page 85 and 86: 69 training, can provide a form of
- Page 87 and 88: 71 employer survey estimates were t
- Page 89 and 90: 73 provisions for SYETP and extende
- Page 91 and 92: 75 withdrawals occurred at similar
- Page 93 and 94: 77 Table 2.17 State usage of progra
- Page 95 and 96: 79 2.3.1 Stretton (1982, 1984) 53 S
- Page 97 and 98: 81 Stretton attributed the success
- Page 99 and 100: 83 included in the employment model
34<br />
showed employment entry flows for GTA-OTJ, but <strong>the</strong>re was no modelling <strong>of</strong><br />
employment outcomes. Stretton (1982, 1984) found that GTA-OTJ performed better on<br />
post-programme employment than training in EPUY 6 , but was no different to SYETP.<br />
Baker (1984) also found that GTA-OTJ performed better than EPUY, and no different to<br />
SYETP. Before modelling, it was found that 58.9 per cent <strong>of</strong> GTA were in continuous<br />
full-time work, made up <strong>of</strong> 45.4 per cent retained in <strong>the</strong>ir placement job and 13.5 per cent<br />
not retained, with 29.8 per cent having non-continuous full-time work, while <strong>the</strong><br />
estimated probability for continuous full-time employment after <strong>the</strong> programme for those<br />
with 17 weeks <strong>of</strong> unemployment was 0.569 (Baker (1984) p19 Table 5.2, p47 Table A8,<br />
p48 Table A10). Rao and Jones (1986) estimated post-programme full-time continuous<br />
employment chances for GTA-OTJ 1981-1983 relative to <strong>the</strong>ir quasi-control group as<br />
being 59.8 per cent for <strong>the</strong> least disadvantaged and 14.6 per cent for <strong>the</strong> most<br />
disadvantaged. This positive employment effect was greater than that found for SYETP.<br />
2.1.3 Jobstart<br />
Jobstart began in December 1985, when SYETP and <strong>the</strong> AWSS ended by being<br />
subsumed into <strong>the</strong> new Jobstart programme as all labour market programmes were<br />
restructured (Ross (1988) p34 footnote 9). The specialist programmes, ‘<strong>Special</strong> Needs<br />
Job Sector <strong>Subsidy</strong>’ and ‘Disabled on-<strong>the</strong>-job subsidy’, were also merged into Jobstart<br />
(Kesteven (1987): 45). All aspects <strong>of</strong> SYETP, including <strong>the</strong> Commonwealth SYETP, as<br />
described later in <strong>the</strong> section about SYETP, turned up as components in Jobstart. At<br />
inception, Jobstart had two key components, private sector Jobstart and Commonwealth<br />
Jobstart. The ‘Commonwealth Work Experience programme’ was identical to<br />
Commonwealth SYETP – it lasted for 17 weeks subsidy, and was limited to 15-24 year<br />
olds, with <strong>the</strong> department fully reimbursed for <strong>the</strong> wage paid to <strong>the</strong> placement. However,<br />
in May 1987 <strong>the</strong> Commonwealth component ceased. After this, Private Sector Jobstart<br />
became synonymous with <strong>the</strong> term Jobstart.<br />
Eligible groups for Jobstart were divided into two: Jobstart basic rates applied to those<br />
unemployed for 6 <strong>of</strong> <strong>the</strong> last 9 months, while Jobstart <strong>Special</strong> rates applied to those long-<br />
6 Education Programme for Unemployed <strong>Youth</strong>; an <strong>Australian</strong> training program part <strong>of</strong> NEAT; consisting<br />
<strong>of</strong> courses aimed to improve basic literacy, numeracy and social skills.
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