The Displacement Effect of Labour-Market Programs: MONASH Analysis

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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)


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.

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Item type Article
DOI 10.1111/j.1475-4932.2006.00330.x
Official URL
Subjects Historical > FOR Classification > 1402 Applied Economics
Historical > Faculty/School/Research Centre/Department > College of Business
Current > Division/Research > Centre of Policy Studies (CoPS)
Keywords labour-market programs, displacement percentages, CGE modelling
Citations in Scopus 9 - View on Scopus
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