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Evaluation of the Australian Wage Subsidy Special Youth ...

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48<br />

eligibility for programmes. Eligible youths were referred to employers by <strong>the</strong> CES and<br />

administration <strong>of</strong> <strong>the</strong> programme was carried out by <strong>the</strong> CES.<br />

In 1983, SYETP rates varied by age, with a lower $75 for 15-17 year olds but $100 for<br />

18-24 year olds.<br />

In 1984 programme conditions for employers included <strong>the</strong> development <strong>of</strong> a training plan<br />

for <strong>the</strong> new employee, and <strong>the</strong> employer had to pay <strong>the</strong> relevant award wage (Smith<br />

(1985): 15). In 1984, <strong>the</strong> standard rate <strong>of</strong> SYETP and <strong>the</strong> second phase <strong>of</strong> extended-<br />

SYETP remained at $75, and <strong>the</strong> initial phase rate <strong>of</strong> extended-SYETP stayed at $100 per<br />

week. In 1984, this was equivalent to “almost half <strong>the</strong> median full-time weekly earnings<br />

<strong>of</strong> teenagers” (Smith (1984a): 15).<br />

The SYETP programme ended at <strong>the</strong> end <strong>of</strong> December 1985. However, from a practical<br />

viewpoint all subsidised employment in place would have continued until ei<strong>the</strong>r <strong>the</strong><br />

placement ended or expiry <strong>of</strong> <strong>the</strong> subsidy period. Thus <strong>the</strong> scheme is considered to be<br />

completed in practice at <strong>the</strong> end <strong>of</strong> September 1986, or between at most 17-34 weeks<br />

after December 1985.<br />

2.2.2 An overview <strong>of</strong> SYETP changes<br />

The following Table 2.4 allows an overview <strong>of</strong> <strong>the</strong> changes to SYETP programme<br />

definition over time. As a result <strong>of</strong> <strong>the</strong> variations introduced <strong>the</strong> programme became<br />

increasingly complex. The age and unemployment duration necessary for eligibility<br />

altered over time, as did <strong>the</strong> subsidy period and payment.<br />

While ostensibly a flat rate, SYETP did have some tiers introduced. Tiers can alter <strong>the</strong><br />

target group as it leads to favouring <strong>of</strong> a particular group through more advantageous<br />

subsidy, but in practice <strong>the</strong> effect might not be as expected due to <strong>the</strong> interaction with<br />

o<strong>the</strong>r labour market features. A key aspect <strong>of</strong> change to <strong>the</strong> programme is that at various<br />

stages, <strong>the</strong> subsidy rate paid varied by age, as did <strong>the</strong> unemployment benefit rate paid.<br />

However, while early on <strong>the</strong>re was no age variation for <strong>the</strong> subsidy but unemployment

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