The Causes of Long-Term Income Support Receipt Associated with Unemployment

R Wilkins, David BLACK, Yi Ping Tseng

Melbourne Institute of Applied Economic and Social Research | Published : 2005


This study investigates the causes of long-term receipt of income support payments associated with unemployment. While the roles played by a variety of factors are investigated, a particular focus of the study is on the extent, nature and persistence of ‘duration dependence’ of income support receipt for unemployed customers. Our basic question here is Controlling for the effects of other characteristics, is the probability of exiting payments negatively related to duration on payments, and what is the extent of this duration dependence? But a further important question in this regard is Do these effects persist from one spell to the next, and what is the extent and nature of this persistenc..

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