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The Displacement Effect of Labour-Market Programs: MONASH Analysis

Dixon, Peter and Rimmer, Maureen T (2006) The Displacement Effect of Labour-Market Programs: MONASH Analysis. Economic Record, 82 (s1). S26-S40. ISSN 0013-0249 (print) 1475-4932 (online)

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Abstract

A key question concerning labour-market programs is the extent to which they generate jobs for their target group at the expense of others. This effect is measured by displacement percentages. We describe a version of the MONASH model designed to quantify the effects of labour-market programs. Our simulation results suggest that: (i) labour-market programs can generate significant long-run increases in employment; (ii) displacement percentages depend on how a labour-market program affects the income trade-off faced by target and non-target groups between work and non-work; and (iii) displacement percentages are larger in the short run than in the long run.

Item Type: Article
Uncontrolled Keywords: labour-market programs, displacement percentages, CGE modelling
Subjects: FOR Classification > 1402 Applied Economics
Faculty/School/Research Centre/Department > College of Business
Faculty/School/Research Centre/Department > Centre of Policy Studies (CoPS)
Depositing User: Ms Julie Gardner
Date Deposited: 30 Apr 2014 04:31
Last Modified: 04 Oct 2015 23:54
URI: http://vuir.vu.edu.au/id/eprint/24595
DOI: https://doi.org/10.1111/j.1475-4932.2006.00330.x
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Citations in Scopus: 4 - View on Scopus

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