The Relationship between Labor Market Conditions and Welfare Receipt in Australia: A Stock-Flow Analysis

Ha Thi Hong Vu ()

ANU Working Papers in Economics and Econometrics from Australian National University, College of Business and Economics, School of Economics

Abstract: This paper estimates the role of labor market conditions in the recent decline in welfare receipt among the working age population in Australia. A stock-flow model is used, which involves modeling the underlying welfare flows and using the results to simulate the effect of labor market conditions on the welfare stock. The simulation analysis suggests that improvements in the labor market explain the majority of the decline. A range of robustness checks are undertaken including using alternative levels of geographic disaggregation to deal with likely measurement error in labor market data.

JEL-codes: C59 J11 I38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp and nep-lab
Date: 2012-04
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Persistent link: http://EconPapers.repec.org/RePEc:acb:cbeeco:2012-573

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