Evaluation of the Australian Wage Subsidy Special Youth ...

Table of contents
Table of contents.............................................................................................................. i
List of Tables and Figures.............................................................................................. xi
Glossary ....................................................................................................................... xiv
Abstract......................................................................................................................... xv
1: Wage subsidy theory and evaluation .............................................................................. 1
1.1 Structure of this research .......................................................................................... 1
1.1 General introduction ................................................................................................. 2
1.2 Brief summary of the theory of wage subsidies........................................................ 7
1.3 Introduction to evaluation of programs................................................................... 16
1.3.1 Evaluation of programs........................................................................ 17
1.3.2 Evaluation problem.............................................................................. 18
1.3.3 Selection............................................................................................... 20
1.3.4 Observables and unobservables ........................................................... 22
1.4 Brief comment on recent overseas evidence of wage subsidy evaluations ............ 23
2: Australian literature review .......................................................................................... 28
2.1 Review of Australian wage subsidy evaluation evidence....................................... 30
2.1.1 Adult Wage Subsidy Scheme............................................................... 31
2.1.2 ‘General Training Assistance On-the-Job-Training’ ........................... 33
2.1.3 Jobstart ................................................................................................. 34
2.1.4 Discussion............................................................................................ 41
2.2 SYETP implementation .......................................................................................... 43
2.2.1 Historical development of SYETP........................................................... 43
2.2.2 An overview of SYETP changes ............................................................. 48
2.2.3 SYETP operation ..................................................................................... 51
2.2.4 Political environment of SYETP ............................................................. 55
2.2.5 Economic Context of SYETP at the time of our analysis........................ 58
2.2.5.1 Role and impact of the CES.............................................................. 58
2.2.5.2 Unemployment in the Australian economy over the 1980’s ............ 62
2.2.5.3 Discussion......................................................................................... 69
2.2.6 Context of SYETP environment and operation ....................................... 70
2.2.6.1 General results for SYETP using other approaches.......................... 70
2.2.6.2 Job characteristics ............................................................................. 71
2.2.6.3 Characteristics of SYETP commencements ..................................... 72
2.2.6.4 Factors affecting completion of subsidy placement.......................... 77
2.3 Critical Review of Evaluation of SYETP ............................................................... 78
2.3.1 Stretton (1982, 1984) .......................................................................... 79
2.3.2 Baker (1984) ........................................................................................ 81
2.3.3 Rao and Jones (1986)........................................................................... 84
2.3.4 Richardson (1998)................................................................................ 87
2.3.5 General discussion ............................................................................... 91
3: Study 1 Replication....................................................................................................... 94
3.1 Motivation for replication....................................................................................... 94
3.2 Methods: The Heckman selection model................................................................ 95
3.2.1 Self-selection and the evaluation of programmes................................ 95
3.2.2 The estimated model............................................................................ 96
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