Evaluation of the Australian Wage Subsidy Special Youth ...

44
characteristics of the programme and the labour market environment are the focus of
discussion, with emphasis on details pertinent to the period of our analysis.
SYETP was the first wage subsidy scheme to be introduced in Australia (Chapman
(1985): 101). The scheme started operation in September/October 1976. 17 The stated
objective was to encourage the employment of young unemployed persons. Over the
subsequent period to December 1985 when SYETP ended, almost all labour market
programmes in Australia were targeted at young people. 18 There was also a distinct
emphasis on private sector involvement in SYETP. The subsidy was given at a flat rate
for a limited time period.
SYETP was initially quite closely targeted. However, it gradually evolved broader
application and was tweaked to vary according to age and unemployment duration. The
following discussion draws heavily on the historical progression of SYETP found in
BLMR (1984), Smith (1983, 1984a), Chapman (1985), Hoy (1983), Kesteven (1987),
Ross (1988), and Stretton and Chapman (1990).
On initial introduction in October 1976, SYETP was for 15-19 year olds who had left
school in 1975 (BLMR (1984): 159). Employers received $58 per week for six months.
The eligibility was rapidly extended by December 1976 to all 15-19 year olds who had
been unemployed and away from full-time education for at least 6 of the last 12 months.
The age range was extended to 15-24 year olds who had been unemployed and away
from full-time education for at least 6 of the last 12 months in July 1977, and the subsidy
increased to $63. In October 1977, the unemployment criterion was relaxed to those
unemployed and away from full-time education for at least 4 of the last 12 months, rather
than 6, and the rate rose slightly to $66.
17 BLMR (1984) p127 gives September, p159 gives October.
18 BLMR (1984) p128. There were some exceptions, such as the Regional Employment Development
Scheme (REDS) which started in September 1974, but was ended in 1975 and fully phased out by the end
of 1977. This program gave grants for specific labour intensive projects, costs of wages were paid to the
employer for up to 12 months, and award wages paid to placements. Eligible participants were unemployed
with preference given to those with dependents and with longer unemployment (Kesteven (1987): 65).