Evaluation of the Australian Wage Subsidy Special Youth ...

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the CES. In support of this they cited statistics 37 reflecting that about 30 percent of all
vacancies were registered with the CES. In addition to the volume constraint, they noted
that the majority of vacancies were concentrated in low-skilled occupations. In contrast to
the low vacancy attraction, the majority of jobseekers made use of the CES. It was noted
that 80 to 90 per cent of jobseekers looking for full-time work used the CES. 38 However,
it was also made clear that although the majority registered with the CES, as registration
was a condition for receipt of unemployment benefits, more than 90 per cent additionally
used other methods, so it was not the sole method and likely not the predominant method
for job search.
Referral and placement 39 data for the Brisbane area, regarded as a good example of
average CES activities, was analysed by Wielgosz (1984). In examining referral to
notified vacancies the underlying assumption about CES functioning in referral to
vacancies was clarified as follows: where “…employers have certain preferences and
expectations about the type of labour they require, that the CES is aware of these
preferences and in it’s desire to fill vacancies and fill them as quickly as possible, will
refer those unemployed applications who are most likely to be placed easily and quickly”
(Wielgosz (1984): 12).
Using a probit econometric analysis, Wielgosz (1984) found referrals to have several
statistically significant factors amongst applicant characteristics, being negatively related
to age, educational attainment (years of schooling) and duration of unemployment
(current spell in weeks) of applicants, with positive effects for applicants in
clerical/administrative and skill trade occupations (relative to a base of all other
occupations except semi-skilled and unskilled). Wielgosz (1984) separately modelled
successful placement in a job, with a variable for the number of referrals received and
found this significantly increased the probability of placement using the Heckman
method to control for sample selection (Wielgosz (1984) p19 Table 7). No details of the
Heckman sample selection model are presented, and so it is not clear what exclusion
37 Wielgosz (1984) p4 footnote 4 citing ABS Cat.6231.0 ‘Job vacancies, Australia’ various issued to 1984.
38 Wielgosz (1984) p4 citing ABS Cat.6222.0 ‘Persons looking for work, Australia’ various issued to 1984.
39 Note that placement here is in subsidised or unsubsidised jobs.