English, Article, Journal or magazine article edition: The Unemployment Trap Meets the Age-Earning Profile. Bruce Chapman; James Jordan; Ken Olivier; ...

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Bookmark: http://trove.nla.gov.au/version/48227
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Unemployment Trap Meets the Age-Earning Profile.
Author
  • Bruce Chapman
  • James Jordan
  • Ken Olivier
  • John Quiggin
Physical Description
  • preprint
Notes
  • 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 “unemployment trap”. However, conventional replacement rates ignore the fact that age-earnings profiles slope upward through the acquisition of labour market experience. We offer a dynamic reinterpretation and compare alternative calculations for Australia in 2000. The usual and incorrect approach exaggerates significantly the likelihood of unemployment traps, but the presence of children mitigates considerably, and can even reverse, this assessment.
  • unemployment traps, social security, age-earnings profiles, wages
  • RePEc:auu:dpaper:415
Language
  • English
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