Melbourne Institute of Applied Economic and Social Research - Research Publications

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How do Administrative Arrangements Affect Exit from Unemployment Payments? The Case of the Job Seeker Diary in Australia

BORLAND, JI ; TSENG, Y (Melbourne Institute of Applied Economic and Social Research, 2003)
Does 'Work for the Dole' Work?

Borland, Jeff ; TSENG, YI-PING ( 2004-07)

This study examines the effect of a community-based work experience program - Work for the Dole (WfD) - on transitions out of unemployment in Australia. To evaluate the WfD program a quasi-experimental exact matching approach is applied. Justification for the matching approach is a 'natural experiment' - limits on WfD project funding - that it is argued constituted a source of random assignment to the program. Participation in the WfD program is found to be associated with a large and significant adverse effect on the likelihood of exiting unemployment payments. The main potential explanation is existence of a 'lock-in' effect whereby program participants reduce job search activity.
Does a minimum job search requirement reduce time on unemployment payments? Evidence from the Jobseeker Diary in Australia

Borland, J ; Tseng, Y-P (INDUSTRIAL LABOR RELAT REV, 2007-04-01)

This study examines the impact of the Jobseeker Diary (JSD), a program designed to increase the job search effort of unemployed persons in Australia. The JSD program is distinguished by combining a focus on work search verification with large scale implementation. Applying a quasi-experimental matching method to data on unemployment spells occurring in 1997–98, the authors find that JSD participation was associated with an increased rate of exit from unemployment payment recipiency and a shorter total time spent on payments. Payment receipt duration is estimated to have fallen for about one-half of JSD participants. The largest effects of the JSD occurred for payment recipients for whom labor demand conditions were the most favorable. Cost-benefit analysis suggests a fairly large net societal gain per program participant.