published in: Economic Record, 2003, 79 (244), 84-102
Welfare reform in Australia centres on the concept of both economic and social participation.
The policy concern is that people who fail to participate in economic and social life may
become entrenched in disadvantage. In 2000 - 2001, a randomized trial was conducted by
the Department of Family and Community Services in order to assess whether an intensive
interview with successive follow-ups would result in increased economic and social
participation for unemployed individuals who had been on income support for more than five
years. We find evidence that participation in the trial led to a reduction in average weekly
hours of work, but increased the amount of hours spent in study or training programs and the
proportion of individuals engaged in such programs. We also find evidence of increased
social integration associated with participation in the trial.
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