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The unemployment trap meets the age-earnings profile

Chapman, Bruce; Jordan, James; Oliver, Ken; Quiggin, John


The relative costs of taking employment or receiving welfare are usually understood through comparisons of a person’s social security entitlements and their wage alternative, known as replacement rates. In some situations it appears that the additional income from working is negligible, and this is said to constitute an “employment trap”. However conventional replacement rates ignore the fact that age-earnings profiles slope upward through the acquisition of labour market experience. We...[Show more]

CollectionsANU Research Publications
Date published: 2000
Type: Working/Technical Paper


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