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Improving work incentives in a means-tested welfare system: The 1994 Australian social security reforms

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  • Peter Saunders

Abstract

Shortly after its re-election in March 1993, the Australian government established an expert committee to advise it on how best to respond to the unemployment crisis. Between May 1990 and May 1993, the total number of unemployed people in Australia rose from 549,000 to 924,000. Over the same period, the number of long- term unemployed people (defined as those out of work for a year or more) trebled, rising from 121,000 to 362,000. The deteriorating unemployment situation seemed worse when set against Australia’s impressive employment achievement over the 1980s (Saunders, 1994) and was more severe than that experienced by most other OECD countries in the early 1990s (OECD, 1994).

Suggested Citation

  • Peter Saunders, 1995. "Improving work incentives in a means-tested welfare system: The 1994 Australian social security reforms," Fiscal Studies, Institute for Fiscal Studies, vol. 16(2), pages 45-70, May.
    • Handle: RePEc:ifs:fistud:v:16:y:1995:i:2:p:45-70
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    References listed on IDEAS

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    1. Mark Wooden, 1994. "The Green Paper on Employment Opportunities, or Don't You Worry About That," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(1), pages 6-10, January.
    2. Whiteford, P. & Bradbury, B. & Saunders, P., 1989. "Poverty Traps in the Australian Social Security System," Economic Analysis and Policy, Elsevier, vol. 19(1), pages 1-28.
    3. Davies, Richard B & Elias, Peter & Penn, Roger, 1992. "The Relationship between a Husband's Unemployment and His Wife's Participation in the Labour Force," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(2), pages 145-171, May.
    4. Peter Travers, 1994. "Restoring Full Employment," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(1), pages 15-18, January.
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    Cited by:

    1. Wang, Jinxian & Van Vliet, Olaf, 2014. "Social assistance and minimum income benefits: Benefit levels, replacement rates and policies across 33 countries, 1990-2009," MPRA Paper 66464, University Library of Munich, Germany.
    2. Nicolas Hérault & Ha Vu & Roger Wilkins, 2020. "The effect of job search requirements on welfare receipt," Melbourne Institute Working Paper Series wp2020n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Callan, Tim & Keeney, Mary J. & Nolan, Brian & Walsh, John R., 2001. "Reforming Tax and Welfare," Research Series, Economic and Social Research Institute (ESRI), number PRS42.

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