The Economic and Social Impacts of the CDEP Scheme in Remote Australia

The Community Development Employment Projects (CDEP) scheme is an unusual labour market and social development program for Indigenous people. Currently the CDEP scheme employs around 36,000 Indigenous Australians and accounts for over one‐quarter of total Indigenous employment. Despite the significance of the CDEP scheme, in recent times, relatively little attention has been given to the potential for the scheme to be used as an instrument for economic and social development in remote areas of Australia. This article present new evidence on the impact of the CDEP scheme on economic and social outcomes for Indigenous people in remote areas of Australia. It is concluded that the scheme has been successful in generating positive economic and community development outcomes at minimal cost to the Australian taxpayer.     

Moving targets: Target groups of active labour market policies and transitions to employment in Europe

This study drew on recurrent debates related to labour market mobility among the unemployed and those outside the labour force and asked to what extent active labour market policies (ALMP) increase employment in these two groups. By utilising new programme‐level data on ALMP, the study analysed the impact of core programmes directed towards registered unemployed; peripheral programmes that target the inactive part of the working age population; and mixed programmes targeting both groups. The programme data were combined with individual‐level panel data from the European Survey on Income and Living Conditions and analysed using multilevel analysis. The main results show that both resources devoted to programmes and their size were related to employment transitions. Transitions among the unemployed were mainly associated with spending on core programmes, whereas the inactive seemed to benefit from increased spending on all types of programmes, as well as increased scope of mixed programmes.     

Work Activation Regimes and Well‐being of Unemployed People: Rhetoric,Risk and Reality of Quasi‐Marketization in the UK Work Programme

Well‐being and employment activation have become central and intertwined policy priorities across advanced economies, with the mandation of unemployed claimants towards employability interventions (e.g. curriculum vitae preparation and interview skills). Compelled job search and job transitions are in part justified by the well‐being gains that resulting employment is said to deliver. However, this dominant focus within the activation field on outcome well‐being – the well‐being improvement triggered by a transition to paid work – neglects how participation in activation schemes can itself affect well‐being levels for unemployed people – what we term ‘process well‐being’ effects. Combining theoretical literature with empirical work on the UK's large‐scale quasi‐marketized Work Programme activation scheme, we develop the limited existing academic discussion of process well‐being effects, considering whether and how activation participation mediates the negative well‐being effects of unemployment, irrespective of any employment outcomes. We further relate variation in such process well‐being effects to the literature on activation typologies, in which ‘thinner’ work‐first activation interventions are linked to weaker process well‐being effects for participants compared to ‘thicker’ human capital development interventions. Confirming these expectations, our empirical work shows that Work Programme participants have, to date, experienced a largely ‘thin’ activation regime in which participants are both expected to, and empirically demonstrate, similar if not lower levels of process well‐being than those who are openly unemployed. These concerning findings speak to all nations seeking to promote the well‐being of unemployed people and particularly those perusing ‘black box’ activation schemes based around quasi‐marketization, devolution and New Public Management.     

Financial Incentives and Job‐search Training: Methods to Increase Labour Market Integration in Contemporary Welfare States?

In their efforts to increase labour market integration, contemporary welfare states emphasize the importance of financial incentives, active job‐searching and participation in labour market programmes. However, the effects of these policies have been minor and in some cases even inconsistent. The aim of this study was to examine whether and how financial incentives and job‐search training programmes increase re‐employment and the quality of re‐employment. A total of 1,015 unemployed persons participated in a Finnish follow‐up study with a randomized experimental design. Although no overall impact of job‐search training on re‐employment emerged, a positive effect was found for those groups of the unemployed who had a financial incentive to participate in the programme. Nevertheless, among unemployed workers with benefits at a minimum level there were no positive effects on the quality of re‐employment, and the impact decreased when unemployment was prolonged. Financial incentives and job‐search training appear to increase re‐employment among those of the unemployed who generally have better chances on the labour market, whereas these measures are not sufficient for the more disadvantaged groups of the unemployed.     

Facilitating the professional transition of migrants in Australia: does gender matter?

This article explores the provision and effects of a program devised to facilitate the professional transition of skilled migrants from non‐English‐speaking backgrounds (NESB) arriving in Australia on permanent visas. The program (‘Skilled Professional Migrants Program’—SPMP) was delivered by AMES Australia and internally evaluated through a telephone survey of 337 past participants. A report of survey results, primarily gauging short‐term post‐program employment outcomes, presented a very positive picture. In this paper we take a fresh look at the quantitative and qualitative survey data in order to analyse the success of the program from the perspective of gender. The paper focuses on gender differences in professional employment transition post‐program in the context of the structural impact of the gendered labour market. We found a significant difference between NESB men and women in their post‐program labour market incorporation into professional jobs that matched their skills. The gendered structures also influenced the ‘networking effect’ of the professional transition program.     

What works best when? The role of active labour market policy programmes in different business cycles

Nordlund M. What works best when? The role of active labour market policy programmes in different business cycles Int J Soc Welfare 2011: 20: 43–54 © 2009 The Author, Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. At what point in a business cycle do long‐term unemployed persons gain most from participation in active labour market policy programmes (ALMP) as compared with openly unemployed persons? This article studies this question from the perspective of individual human capital with the hazard of labour market exit and chances of future labour market stability and equal post‐unemployment income as output variables. All the long‐term unemployed in Sweden were followed on a four‐year basis, with 1993 (recession) and 1999 (boom) as starting years. The study shows mainly positive effects among participants regardless of the state of the market. However, ALMP training has a ‘bridging’ effect over different labour market conditions, and a quick return to the regular labour market is, therefore, not as important for the success of participation as it is among ALMP employment participants.     

Free,free, set them free? Are programmes effective that allow job centres considerable freedom to choose the exact design?

Active labour market programmes are expected to be quite effective if job centres have a substantial degree of freedom to deliver tailor‐made individual services. For Germany, we studied the effectiveness of Schemes for Activation and Integration (SAI), which were introduced in 2009 to grant such freedoms to implement short training and private placement services. We estimated SAI participation effects on welfare recipients’ earnings and employment rate using propensity score matching and rich administrative data. We distinguished between participation in in‐firm training or training in other settings, and considered effect heterogeneity by gender, region and non‐employment duration. Participation substantially improved the participants’ earnings and employment rate, in‐firm training more so than training in other settings. Our employment effect estimates were not considerably larger than those previously found for comparable pre‐reform programmes. A lack of experience with SAI and a still inadequate client focus in the period studied might explain this.     

A Long‐Term Disability Care and Support Scheme for Australia: Opportunities for Disability Sector Reform

Social insurance schemes in Australasia have a long‐standing involvement in leading systemic change as well as funding services for eligible scheme participants. Establishing a long‐term disability care and support scheme for Australia provides opportunities to remove barriers to community access and improve the employment participation of all Australians with a disability, and to increase the use of evidence in policy development and in the delivery of disability supports. Using the examples of successful models in Australia and New Zealand, the authors will propose a model for the development and management of a long‐term disability care and support scheme that enables sector reform in employment participation, barriers to access and participation in all aspects of community life, and funding of disability research to benefit all Australians with a disability.     

Deciphering Deservedness: Canadian Employment Insurance Reforms in Historical Perspective

In 2012, the Government of Canada introduced reforms to Employment Insurance (EI), Canada's primary income security programme for the unemployed. The changes entailed new requirements for particular types of claimants to apply for and accept jobs of increasingly less pay, and codified the efforts claimants must demonstrate in job searches to maintain benefits. These measures leave many claimants little choice but to accept precarious employment as a means of financial survival. The central claim of the article is that recent EI reforms are not adequately understood as an instance of neo‐liberal activation. Instead, they must be situated in a long history of attempts to categorize the unemployed as deserving or undeserving of income security on the basis of their work history and perceptions of their willingness to work. Through a survey of different periods of unemployment policy in Canada, we demonstrate continuity in authorities' efforts to differentiate the unemployed into categories of worthy and unworthy. Within this history, however, the 2012 reforms are unprecedented in the extent to which they reorient the EI programme to service low wage labour markets. By way of conclusion, we suggest that the current EI programme exacerbates insecurities for the growing segment of workers in precarious employment.     

Overcoming barriers: Effects of entering vocational rehabilitation on labour market outcomes

Vocational rehabilitation aims at getting people with health problems or disabilities back into work. In Germany, the Public Employment Service is a central provider of vocational rehabilitation services targeted at unemployed people. Against this background, the study examined the labour market effects of vocational rehabilitation for people registered as unemployed with the Public Employment Service. A comparison of the accepted and the rejected applicants for vocational rehabilitation using inverse probability weighting based on propensity scores provides an insight into its effects. The results suggest that the employment prospects of persons who were accepted in the programme improved modestly after the third‐year following application. A subgroup analysis identified stronger re‐employment effects of acceptance into vocational rehabilitation in eastern Germany as well as for men and older individuals.     

Aboriginal and Torres Strait Islander employment policy and Welfare to Work: The Community Development Programme and the need for new narratives,new alliances and new institutions

The way Australian federal governments have approached Aboriginal and Torres Strait Islander employment and welfare policy over the last two decades has been a paradigmatic example of what not to do in policymaking. In the absence of effective engagement or consultation, a series of decisions under Coalition and Australian Labor Party governments have had a range of negative consequences for Aboriginal and Torres Strait Islander peoples. These changes – centred around the closure of the Community Development Employment Projects (CDEP) scheme and implementation of the Community Development Programme (CDP) – have resulted in increased unemployment, inadequate support for job creation, a dramatic over‐application of income penalties to social security recipients and reduced capacity in many community organisations. This article argues that these outcomes constitute policy failure, especially given that genuine engagement with Aboriginal and Torres Strait Islander people could have prevented many of these consequences. It then turns to an exploration of three ways in which Aboriginal and Torres Strait Islander people are responding to such policy failure: through promotion of new narratives, new alliances, and new institutions. The study concludes that while we should avoid “specious hope”, there is room for optimism in a renewed push for Aboriginal and Torres Strait Islander sovereignty.     

Effective retirement age from employment and full‐time employment,and the impact of the 2008 crisis

Estimates of effective retirement age based on labour force participation rates are commonly used for actuarial experience review and policy development. However, the transition from work to retirement and the socio‐economic environment have evolved over the years, influenced by a growing role for gradual retirement and the labour market impact of the 2008 economic crisis. Rather than focusing exclusively on retirement ages based on labour force participation rates, this article presents complementary estimates of retirement ages to better assess the effective retirement age from employment. It also introduces the concept of retirement from full‐time employment, showing that the retirement age from full‐time employment is systematically lower than the retirement age from employment. The results reveal that the trend towards an increase in the retirement age has been impacted by economic conditions when considering the effective employment of older workers. Results are presented for different Member countries of the Organisation for Economic Co‐operation and Development over the period 2005–2015.     

Lone Parents and Welfare‐to‐Work in England: A Spatial Analysis of Outcomes and Drivers

Mirroring changes across nations of the Organisation for Economic Co‐operation and Development, recent UK governments have redrawn lone parents' entitlement to social assistance benefits ever tighter around participation in the labour market. A radical shift since 2008 has been the gradual transfer of most non‐employed lone parents into the ‘activating’ Jobseekers' Allowance (JSA) regime. The enhanced conditionality requirements of this JSA regime have been justified by both paternalistic and contractualist arguments but, however justified, are built on the premise that behavioural factors drive lone parent employment outcomes, a view made increasingly forcefully under the current Coalition government. This article uses up‐to‐date administrative data at local authority level across England to provide a geographical perspective into the sub‐national changes in lone parent employment outcomes since the transfer to JSA from 2008, as well as the relevant importance of the alternative structural and behavioural accounts to these outcomes. The findings suggest that the JSA transfer has increased lone parent employment, that structural rather than behavioural drivers are more relevant causal factors and that there is good reason to be concerned about the effect of the reforms on the well‐being of lone parents and their children.     

Who are the lucky ones? Heterogeneity in active labour market policy outcomes

Nordlund M. Who are the lucky ones? Heterogeneity in active labour market policy outcomes Int J Soc Welfare 2011: 20: 144–155 © 2010 The Author(s), International Journal of Social Welfare © 2010 Blackwell Publishing Ltd and International Journal of Social Welfare. This study focuses on how the effects from investments in Active Labour Market Policy programmes (ALMPs) may be differently distributed due to the age and educational level of participants. Outcomes were measured as the chance of labour market inclusion, labour market stability and post‐unemployment incomes. This longitudinal study captures long‐term effects among 50,000 Swedes who entered unemployment in 1993. While the youngest gained most from ALMP‐training, the oldest were best helped by ALMP‐ employment in reducing the risk of labour market exit. The lowest educated gained much from ALMP participation, although the effects were weaker than expected: those with a higher education gained more in terms of labour market stability from ALMP‐training compared with the less educated persons. This result was interpreted in terms of a springboard effect, meaning that ALMP‐training pushes higher educated people into further education in the regular educational arena.     

Feeling motivated yet? Long‐term unemployed people's perspectives on the implementation of workfare in Australia

A key thrust of labour market policy in Australia and many other western countries is that long‐term unemployed people lack the personal motivation to engage proactively and successfully in the search for paid employment. In this paper we argue that the implementation of what are experienced as paternal workfare programs are counter‐productive to achieving the official policy goal of improving self‐efficacy and gaining paid employment. The empirical discussion presented in the paper is based on a semi‐longitudinal study that tracked 75 long‐term unemployed people in three different labour markets in Australia between 2005–2007. The study was funded by the Australian Research Council and Jobs Australia.     

Attitudes toward home‐based employment for mothers of young children: Australian evidence

Kelley CGE, Kelley SMC, Evans MDR, Kelley J. Attitudes toward home‐based employment for mothers of young children: Australian evidence
Int J Soc Welfare 2010: 19: 33–44 © 2008 The Author(s), Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. People have mixed feelings about paid employment for mothers with young children. This might reflect opposition to women's work per se or, instead, fear that children are harmed by the mother's absence from the home. To find out, we developed new questions differentiating support for or opposition to mothers working for pay depending on whether the employment is home‐based or outside the home. Data from a large representative national sample of Australia (n= 1,324) show that public support for employment is about 30 percentage points greater if the mother works at home. Structural equation analyses show social differences in levels of support. Thus work at home provides a way of increasing labour force participation and earnings for mothers (with the welfare benefits that implies), which is congruent with public opinion.     

Transitions to employment from labour market enterprises in Norway

In this article we analyse a labour market programme for partially disabled workers that involves the transition from labour market enterprises to a job in the ordinary labour market. We found that the percentage of these people who found jobs after a maximum two-year programme period increased over time. In 1995, 28 per cent became employed in the ordinary job market after leaving the programme. Exit rates to employment increased to 36 per cent in 1998 and to 39 per cent in 1999. We also found heterogeneity in the job transitions. Employment ratios for men were relatively stable over time, varying between 30 and 40 per cent over the period 1995–1999. For women, however, we found a significant change in employment ratios, with 21 per cent finding a job in 1995 and 40 per cent in 1999. In 1995, employment ratios for female participants were below those of male participants, although there was no difference over the whole period studied (1995–1999). In 1999, the average transition rate to employment was higher for female than for male participants.     

The "Employment-first" Welfare State: Lessons from the New Deal for Young People

New Labour is constructing an “employment‐first” welfare state. It plans through Jobcentre Plus to transform the passive culture of the benefit system by creating more explicit links between individual behaviour and engagement with labour market programmes. The New Deal for Young People (NDYP) has been at the forefront of these changes. This paper reports on the findings from four case studies that explored how the NDYP has changed young people's experience of the welfare state. It establishes that NDYP offers a mixture of employment assistance and “pressure” and has made progress in developing front‐line services and helping young long‐term unemployed people into work. NDYP does not, however, work for all. In areas of high unemployment and for some disadvantaged groups intermediate labour markets could enhance the New Deal and make real the offer of “employment opportunities for all”.     

Australian employment services: Help or hindrance in the achievement of mutual obligation?

The concept of mutual obligation underpins Australian employment services. In return for receiving income support, there are three elements of mutual obligation: to actively seek work; to improve one’s competitiveness in the labour market; and to contribute to the community. Failing to undertake mutual obligation activities results in sanctions, usually unemployment benefit suspension or cancellation. In the year 2017/18, one mutual obligation activity, compulsory employment service provider appointments, accounted for more than 93 per cent of sanctions. The study reported here explores unemployed and recently employed workers’ experiences of appointments and their attitudes to the concept of mutual obligation. The findings are that unemployed workers say appointments have little utility for advancing elements of mutual obligation and are psychologically harmful. Non-attendance may be a form of self-protection although seeking a medical exemption or dropping out of the system altogether also appears to be a common self-protection strategy. We also find that non-attendance at appointments cannot be conflated with a negative attitude to mutual obligation and that unemployed workers want services that are effective and psychologically positive to help them to fulfil their mutual obligations.     

A fistful of euros: Is the German one‐euro job workfare scheme effective for participants?

Hohmeyer K, Wolff J. A fistful of euros: is the German one‐euro job workfare scheme effective for participants? Welfare reforms have constituted a major policy issue in many OECD countries in recent decades. In Germany, a major reform in 2005 emphasised the activation of welfare recipients and introduced a workfare programme –‘One‐Euro Jobs’– on a large scale. In the present study, the impact of one‐euro jobs on the employment prospects of different groups of participants was estimated. The analysis was conducted on a large sample of welfare recipients using propensity score matching. The sample of one‐euro job participants and other welfare recipients was drawn from administrative records comprising all those who started their participation in the programme in early 2005. Our results showed that participation slightly improved the medium‐term employment prospects for women but not for men. Participation reduced the employment rate of participants younger than 25 years but raised it for some of the older participant groups. In conclusion, one‐euro jobs are effective for participants who have been jobless for several years but ineffective for participants who were recently employed.