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Impact of the Mutual Obligation Initiative on the Exit Behaviour of Unemployment Benefit Recipients: The Threat of Additional Activities

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  • Linda L. Richardson

Abstract

The Mutual Obligation Initiative requires young unemployment benefit recipients, who have received payments for 6 months, to undertake an activity, in addition to continuing to look for work, in return for those payments. The fact that eligibility for the Mutual Obligation Initiative is determined by age is exploited to evaluate the impact of this program on exit rates from benefit receipt as a natural experiment. Administrative data from the Department of Family and Community Services provides some evidence that individuals subject to the Mutual Obligation Initiative had higher exit rates immediately prior to imposition of the additional activity requirement.

Suggested Citation

  • Linda L. Richardson, 2002. "Impact of the Mutual Obligation Initiative on the Exit Behaviour of Unemployment Benefit Recipients: The Threat of Additional Activities," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 406-421, December.
    • Handle: RePEc:bla:ecorec:v:78:y:2002:i:243:p:406-421
    DOI: 10.1111/1475-4932.00067
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    Cited by:

    1. Hérault, Nicolas & Vu, Ha & Wilkins, Roger, 2020. "The effect of job search requirements on welfare receipt," GLO Discussion Paper Series 646, Global Labor Organization (GLO).
    2. R. G. Gregory, 2013. "The Henderson Question? The Melbourne Institute and fifty years of welfare policy," CEPR Discussion Papers 682, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    3. Robert G. Gregory, 2013. "The Henderson Question? The Melbourne Institute and 50 Years of Welfare Policy," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(2), pages 202-215, June.
    4. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Gielen, Anne C., 2020. "The Intergenerational Effects of Requiring Unemployment Benefit Recipients to Engage in Non-Search Activities," IZA Discussion Papers 13618, Institute of Labor Economics (IZA).
    5. Jeff Borland & Yi-Ping Tseng & Roger Wilkins, 2005. "Experimental and Quasi-Experimental Methods of Microeconomic Program and Policy Evaluation," Melbourne Institute Working Paper Series wp2005n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. Geerdsen, Lars Pico & Holm, Anders, 2007. "Duration of UI periods and the perceived threat effect from labour market programmes," Labour Economics, Elsevier, vol. 14(3), pages 639-652, June.
    7. Ott Toomet, 2008. "Threat Effect Of The Labour Market Programs In Denmark: Evidence From A Quasi-Experiment," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 62, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    8. Brian Graversen & Brian Larsen, 2013. "Is there a threat effect of mandatory activation programmes for the long-term unemployed?," Empirical Economics, Springer, vol. 44(2), pages 1031-1051, April.
    9. Simon Feeny & Rachel Ong & Heath Spong & Gavin Wood, 2012. "The Impact of Housing Assistance on the Employment Outcomes of Labour Market Programme Participants in Australia," Urban Studies, Urban Studies Journal Limited, vol. 49(4), pages 821-844, March.
    10. Peter Saunders & Judith Brown, 2004. "Labour Market Conditions, Applications and Grants of disability support Pension (DSP) in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(3), pages 395-410, September.

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