The impact of unemployment benefit payments on the level and composition of unemployment in Australia / R.G. Gregory and P.R. Paterson.

Abstract

There have been large changes in the unemployment situation in Australia over the 1970s. Between August 1970 and August 1979 the number of unemployed rose from less than 100 000 to almost 400 000, and the proportion of the unemployed receiving benefits increased from 15 per cent to 81 per cent. Coincident with these changes, there have been stong rises in the level of benefit payments. In this paper we examine the relationship between the changes in unemployment and the increases in real benefits. Special insight is gained by using a flow concept of unemployment. It is found that the Show more