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Duration‐Specific Unemployment Outflow Rates and Labour Market Programs
Author(s) -
Leeves Gareth
Publication year - 2000
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/1467-8462.00150
Subject(s) - unemployment , duration (music) , matching (statistics) , outflow , economics , labour economics , demographic economics , macroeconomics , geography , mathematics , statistics , physics , meteorology , acoustics
A matching function approach is used to investigate the macroeconomic effects of labour market program (LMP) commencements on unemployment outflows in Australia using unpublished data that classify commencements and outflows by duration of unemployment. The results indicate that LMPs have had significant effects on outflows from long‐term unemployment. However, the net impact of programs on these outflows suggests that the substitution and displacement effects associated with programs are high. These results are consistent with recent microeconomic research into the effects of LMP participation on individual transitions out of unemployment.