UNEMPLOYMENT BENEFITS AND UNEMPLOYMENT IN AUSTRALIA, 1950–89

Although the incidence of unemployment in Australia is well established, the causes of unemployment remain controversial. Various putative causes for unemployment exist, including the unemployment benefits system. The present study sought to estimate the impact of the generosity of Australian unemployment benefits on the measured unemployment rate of three recipient groups, single adult males over 21, married males, and married males with two children, for the period 1950 to 1989 inclusive. The results of this statistical exercise are largely consistent with similar work done in Australia and elsewhere; namely, that while unemployment benefits did increase the measured rate for unemployment during the period 1950 to 1989 to a statistically significant degree, other stronger influences on unemployment were evident.