Duration-Specific Unemployment Outflow Rates and Labor Market Programs
The Australian Economic Review, Vol. 33, Issue 3, September 2000
Posted: 17 Aug 2001
Abstract
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the macroeconomic effects of labour market program LMP, commencements on unemployment outflows in Australia using unpublished data that classify commencements and outflows by duration of unemployment.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.
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