The longer-term employment outcomes of people who move from a benefit to work.Abstract This article reports results from a study that used Linked Employer-Employee Data (LEED) to examine the longer-term employment outcomes of people who moved from a government income support benefit to employment during 2001/02. The study population was observed ob·serve v. ob·served, ob·serv·ing, ob·serves v.tr. 1. To be or become aware of, especially through careful and directed attention; notice. 2. for two years before and after the benefit-to-work transition. The study described short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. and longer-term employment retention rates and earnings growth patterns, and compared the outcomes of the benefit-to-work study population with those of non-beneficiaries who began a job in the same year. It also investigated some of the factors that are associated with more or less "successful" outcomes, including personal characteristics, prior employment experiences, the timing and nature of the benefit-to-work transition, and the characteristics of post-transition employers. Employment retention rates were found to be moderately high in the two-year follow-up follow-up, n the process of monitoring the progress of a patient after a period of active treatment. follow-up subsequent. follow-up plan period, but at any given time around one-third of those with jobs were earning less than $1,500 a month, indicating that they probably were not employed full-time full-time adj. Employed for or involving a standard number of hours of working time: a full-time administrative assistant. full or for a full month. Jobs also tended to be short in duration. More than half of the study group returned to a benefit during the follow-up period. INTRODUCTION People who move from an income support benefit to work do not always stay employed for long. The international literature indicates that former welfare recipients often struggle to retain employment, cycle between short-term jobs and welfare, and can remain in low-paid low-paid adj → mal payé(e) → aux salaires bas low-paid low adj → schlecht bezahlt low-paid adj situations for extended periods. (2) An important goal of employment policy is to assist people who have had lengthy spells of income support to return to work, remain employed and improve their skills and incomes over time. This article reports a selection of findings from a study that used Linked Employer-Employee Data (LEED) to examine the longer-term employment outcomes of people who moved from a working-age benefit to employment in 2001/02. (3) LEED is a new data source that provides comprehensive national data on taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. payments from April 1999 to the present. Employee earnings and income received from social welfare benefits are separately identified. Individuals and employers in LEED have unique identifiers With reference to a given (possibly implicit) set of objects, a unique identifier is any identifier which is guaranteed to be unique among all identifiers used for those objects and for a specific purpose. that enable longitudinal lon·gi·tu·di·nal adj. Running in the direction of the long axis of the body or any of its parts. linking of records. The data can therefore be used to study individuals' transitions between employment states and onto and off benefits, as well as their transitions between employers. (4) The study had three main objectives. First, it described the benefit-to-work experiences of a large sample of former beneficiaries. We constructed a variety of different measures of both short-term and longer-term outcomes for people who moved from a main benefit to employment during 2001/02, in order to provide a reasonably detailed picture of post-benefit employment outcomes. We aimed to identify what proportions achieved continuity in their employment, had monthly earnings that were above a minimum level consistent with full-time employment, and improved their earnings over time. Second, the study examined the effects of factors such as demographic See demographics. characteristics, prior employment experience, mobility between employers, and employer characteristics on individuals' employment and earnings outcomes, using regression regression, in psychology: see defense mechanism. regression In statistics, a process for determining a line or curve that best represents the general trend of a data set. methods and a richer set of explanatory ex·plan·a·to·ry adj. Serving or intended to explain: an explanatory paragraph. ex·plan variables than has been used in previous research. Building on but extending the work of Hyslop
a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. per employee, expansion or contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction of employment, and employee turnover rate. Third, the study compared the employment outcomes of people who moved from benefits to employment with the outcomes of non-beneficiaries who began a new job in the same reference year. Studies of the employment experiences of former welfare recipients often have no basis for assessing what level of employment retention or earnings growth can be realistically expected. Taking advantage of the fact that LEED contains data on all employees in New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , we compared the employment outcomes of former beneficiaries with those of two comparison groups: all non-beneficiaries who started a new job in 2001/02, and non-beneficiaries who made a transition from a state of low employment (defined as employment with earnings below $1,500 a month) or non-employment into work. These comparison groups provide two alternative reference points for evaluating the retention rates, earnings and earnings growth of the benefit-to-work study population. The research had a number of limitations. At the time it was undertaken, it was not possible to identify different types of benefits in LEED. No information was available on the specific factors that made people eligible for income support. Only limited socio-demographic information was available on beneficiaries. Furthermore, the findings of the study may have been influenced by the timing of the study with respect to the business cycle: 2001/02 was a period of unusually strong employment growth, which may have led to better employment outcomes than would otherwise be observed. DATA DESCRIPTION AND STUDY DESIGN Features of LEED and Data Definitions Due to the way income tax data are collected, LEED is built upon monthly records of individuals' taxable incomes, as received from each employer or from the benefit system. Individuals and employers in LEED have unique identifiers that enable records to be linked longitudinally lon·gi·tu·di·nal adj. 1. a. Of or relating to longitude or length: a longitudinal reckoning by the navigator; made longitudinal measurements of the hull. b. through time. The benefit payments that are recorded in LEED are taxable benefits, a category that includes all of the main income-tested working-age benefits such as Unemployment, Sickness SICKNESS. By sickness is understood any affection of the body which deprives it temporarily of the power to fulfill its usual functions. 2. Sickness is either such as affects the body generally, or only some parts of it. , Invalid's, Domestic Purposes, Widow's, Emergency, Independent Youth and Transition to Retirement. Non-taxable non-taxable adj → nicht steuerpflichtig non-taxable adj non-taxable income → reddito non imponibile allowances such as the Accommodation accommodation n. 1) a favor done without compensation (pay or consideration), such as a signature guaranteeing payment of a debt, sometimes called an accommodation indorsement. Supplement and Disability Allowance are not recorded. Therefore, when we refer to movement from benefits or income support, we are referring solely to transitions from one of the main, taxable benefits. People in this situation may have continued to receive income support through one of the supplementary allowances that are available to low-income low-in·come adj. Of or relating to individuals or households supported by an income that is below average. individuals or families in employment. LEED records the taxable earnings and benefit payments that were received in a particular calendar month, which may not coincide perfectly with the employment period or the benefit spell spell, word, formula, or incantation believed to have magical powers. The spell can be used for evil or good ends; if evil, it is a technique of sorcery. Many authorities believe that the spell was the precursor of prayer. . If a person leaves employment part way through a month but is working again in the following month, no break in employment is recorded in LEED (although a temporary drop in earnings may be apparent). Furthermore, in months when an individual received income from multiple payers, it is not possible to identify whether the jobs occurred sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen or concurrently con·cur·rent adj. 1. Happening at the same time as something else. See Synonyms at contemporary. 2. Operating or acting in conjunction with another. 3. Meeting or tending to meet at the same point; convergent. . In this study, we define an individual as being on benefit if they received any benefit income during the calendar month. An individual is considered to have exited the benefit system in the first calendar month after their last benefit payment, and to be off benefit in any month when they did not receive any benefit income. A person must be without benefit income for at least one complete calendar month to be classified as having left a benefit, in this study,. (5) Similarly, we define an individual as being in employment if they received any employment-based earnings (excluding ACC See adaptive cruise control. payments). Being "in employment" and being "on benefit" are not mutually exclusive Adj. 1. mutually exclusive - unable to be both true at the same time contradictory incompatible - not compatible; "incompatible personalities"; "incompatible colors" states. Benefit abatement A reduction, a decrease, or a diminution. The suspension or cessation, in whole or in part, of a continuing charge, such as rent. With respect to estates, an abatement is a proportional diminution or reduction of the monetary legacies, a disposition of property by will, when rules allow beneficiaries to retain a certain amount of income from part-time part-time adj. For or during less than the customary or standard time: a part-time job. part employment, and a reasonably high proportion of beneficiaries do in fact work in part-time jobs. The Study Population and Comparison Groups Table 1 defines the study populations and comparison groups that were constructed for the analysis. The main study population (the "benefit-to-work transition group" or BTW "By the way." See digispeak. (chat) BTW - By the way. ) comprises all people of working age (defined here as 15-59 years) who moved off a main benefit after receiving it for at least three months, remained off for at least one complete calendar month, and were employed in the month after their last benefit payment, during the financial year from I April 2001 to 31 March 2002. To exclude those whose contact with the benefit system was fleeting, we require that they were in receipt of benefit payments for at least three months before the transition to employment. This study population is used to estimate what proportion of all benefit-to-work transitions were followed by "successful" outcomes in terms of employment retention, self-sufficiency self-suf·fi·cient adj. 1. Able to provide for oneself without the help of others; independent. 2. Having undue confidence; smug. self and earnings growth. A more restricted study population is used to investigate the factors that are associated with variations in longer-term outcomes, given that a successful transition from a benefit to employment took place. For that analysis, we restrict In the C programming language, the data pointed to by a pointer declared with the restrict qualifier may not be pointed to by any other pointer. This allows for more effective optimization. the study population to people who remained employed and off benefit for a minimum of three calendar months after their transition from a benefit to employment. The stricter definition ensures that we focus on people who have unambiguously made a transition from income support to employment. The BTW-2 group represents 78% of the original group. To provide some benchmarks for evaluating the employment outcomes of the study population, we constructed two non-beneficiary comparison groups. The "non-beneficiary job entrants" group (NBJE) comprises everyone who started a new waged or salaried job in 2001/02, and had received no benefit income in the previous two years. This group is a cross-section cross section also cross-sec·tion n. 1. a. A section formed by a plane cutting through an object, usually at right angles to an axis. b. A piece so cut or a graphic representation of such a piece. 2. of all employees who were starting a new job, excluding former beneficiaries, and was expected to have relatively good employment outcomes. It includes people who moved directly from one job to another, as well as people who were out of the labour force or out of New Zealand before starting their new job. A second non-beneficiary comparison group comprises non-beneficiary job entrants who came from a situation of non-employment or low employment (defined as earnings of less than $1,500 a month) in the preceding three months (NBJE-2). This is intended to represent people who, like members of the BTW study population, had been out of fulltime employment for at least three months and were now starting a new job. A priori a priori In epistemology, knowledge that is independent of all particular experiences, as opposed to a posteriori (or empirical) knowledge, which derives from experience. , it is unclear how the employment outcomes of this second non-beneficiary group will compare with those of the BTW transition group. Note that the comparison groups are not matched to the study population in their characteristics or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , and so they do not represent control groups. The purpose of these comparison groups is to illustrate the range of variation that occurs in the employment outcomes of newly-hired employees, so as to better understand the relative outcomes of former beneficiaries. Period of Observation and Variable Construction To simplify comparisons across members of the study sample and comparison groups, we standardise Verb 1. standardise - evaluate by comparing with a standard standardize appraise, assess, evaluate, valuate, value, measure - evaluate or estimate the nature, quality, ability, extent, or significance of; "I will have the family jewels appraised by a reference periods for the calculation of all pre-transition and post-transition variables, using the 24 months on each side of the transition month. The "history" variables are calculated using data for the 24 months leading up to and including the last month of benefit receipt. The "outcome" variables are calculated using the 24 months following the end of the reference benefit spell. In the case of the non-beneficiary comparison groups, history variables are calculated using the 24 months prior to the first month of the reference job spell. Outcome variables are calculated using 24 months of data beginning with the first month of the new job. Earnings and benefit payments are reported in gross terms and are converted to March 2004 dollar values using the Consumer Price Index. PROFILE OF THE STUDY POPULATION AND COMPARISON GROUPS AND KEY FEATURES OF TRANSITIONS TO WORK Summary information on the demographic characteristics and recent benefit receipt and employment histories of the study population and the comparison groups is reported in Table 2. Table 3 gives data on the nature of the transition to work, while Table 4 presents information on the characteristics of employers. These results are not discussed fully here, due to insufficient in·suf·fi·cient adj. 1. Not sufficient. 2. Incapable of proper functioning. space. We simply note some of the key findings. People in the BTW study group had a similar age profile to the first comparison group of all non-beneficiary job entrants (NBJE). They were substantially older than the second comparison group of non-beneficiary job entrants who came from low employment or non-employment (NBJE-2). The latter group included a high proportion of young people with limited work experience and was not as similar to the BTW group as we had anticipated. The benefit and employment history data indicate that people in the BTW study group typically had had substantial prior contact with the benefit system, as well as considerable employment experience, in the two years leading to the transition. On average, benefit income was received for 14 months of the past two years. On average, people in the BTW group had been employed for 12.9 months of the past 24. This included employment during nearly half the months of the reference benefit spell. In the past two years, 92% had had some employment. Compared with all non-beneficiary job entrants (NBJE), the study group of former beneficiaries had somewhat less recent employment experience, and lower average monthly earnings when not on a benefit ($1,573 compared with $1,963). However, the employment rates and earnings of the former beneficiaries were far above the employment rates and earnings of the second comparison group of non-beneficiary job entrants who came from low employment or non-employment (NBJE-2). Only around 58% of the BTW group started work with a new employer at the time of transition. Twelve per cent returned to an employer that they had worked for previously, and a further 31% continued to work for an employer that they were working for during their benefit spell. While some people in the latter group experienced a substantial increase in their level of earnings at the time of leaving a benefit, most did not. For a substantial minority of people in the BTW study population, therefore, the exit from a benefit was not actually accompanied ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. by a material change in their employment circumstances. It may have been triggered by some other change that affected their benefit eligibility, such as the employment of a spouse spouse A legal marriage partner as defined by state law or partner. We estimate that as many as 37% of the entire BTW group were employed on a part-time or a part-month basis immediately after their transition off a benefit, based on the fact that they earned less than $1,500 a month in their first "complete" post-transition month. On the other hand, around one-half do appear to have had a substantial increase in their level of earnings at the time of their transition to work. Employer statistics indicate that the typical first employer after the transition to work had 57 employees, an average per-person monthly pay level of $2,025, an annual growth rate of 4% and an annual turnover rate of 63%. A comparison of the characteristics of on-benefit, first and main post-transition employers shows an increase in firm size and average employee earnings, indicating that the study population tended to be moving towards larger and higher-paying firms. The jobs taken at the time of the transition to work and subsequently were more likely to be in manufacturing and less likely to be in agriculture or accommodation, cafes and restaurants, than benefit spell jobs. This change in industrial composition is consistent with a move away from part-time towards full-time jobs. EMPLOYMENT OUTCOMES The employment outcomes and earnings of the benefit-to-work (BTW) transition group in the two years after leaving a benefit are discussed in this section. First we describe the outcomes of the BTW group using a selection of different descriptive measures. Then we summarise Verb 1. summarise - be a summary of; "The abstract summarizes the main ideas in the paper" sum, sum up, summarize sum up, summarize, summarise, resume - give a summary (of); "he summed up his results"; "I will now summarize" the findings of an analysis that used regression methods to analyse an·a·lyse v. Chiefly British Variant of analyze. analyse or US -lyze Verb [-lysing, -lysed] or -lyzing, the effects of a variety of factors on benefit-to-work outcomes. Although the literature on BTW transitions offers some clear views on what types of employment outcomes are desirable, it is far less clear about the level of achievement that can reasonably be expected of former beneficiaries. One way of evaluating the outcomes of former beneficiaries and identifying what (if anything) is distinctive about their employment patterns is to compare their outcomes with those of other new job entrants. We do this in the final part of this section of the paper, using the non-beneficiary job entrant en·trant n. One that enters, especially one that enters a competition. [French, from present participle of entrer, to enter, from Old French; see enter. comparison groups introduced earlier. Outcomes of the Benefit-to-Work Transition Group Summary measures of the post-transition outcomes of the BTW study group are reported in the left-hand left-hand adj. 1. Of, relating to, or located on the left. 2. Relating to, designed for, or done with the left hand. left-hand Adjective 1. column of Table 5. The figures shown represent group means or percentages, except in the case of earnings and income variables, in which case the group median is used. The first column gives results for the entire BTW group. The second and third columns of the table report the outcomes of those with the shortest benefit spell durations (3-6 months) and those with the longest (24 months or longer). The measures of employment retention are reported in two metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. : average months and percentages of time. Percentages of time are shown in parentheses See parenthesis. parentheses - See left parenthesis, right parenthesis. under the results they refer to. Employment retention rates: sustained employment? Our preferred measure of sustained employment is the proportion of months in which the individual was employed and not in receipt of any means-tested means-test v. means-test·ed, means-test·ing, means-tests 1. To apply a means test to or require a means test for (a governmental program, for example). 2. benefit income. Under this measure, employment does not have to be continuous. On average, people in the BTW group spent 4.9 months or 81% of their first six post-transition months employed and off benefits (as shown in the first and second rows of the table). The average proportion of time in which group members were employed and not on benefits dropped to 62% in the second six months and 61% in the second year. Over the entire period, it was 66% (or 15.9 out of 24 months). (6) Employment retention rates are higher if the criterion
As far as we can tell using LEED data (which do not reveal employment gaps of less than one month), 42% were continuously employed and off benefits for the first 12 months after exiting from a benefit, while 29% remained continuously employed and off benefits for the full two years. Sustained employment with the potential for self-sufficiency. It is important to distinguish between any employment and employment in jobs that were substantive Substantive may refer to: In grammar:
adj. 1. Of, containing, or being a notion; mental or imaginary. 2. Speculative or theoretical. 3. self-sufficiency criterion. That threshold is similar to the monthly earnings that would be provided by a full-time job paid at the adult minimum wage rate in the final year of the study period ($8.50 per hour x 40 hours x 4.33 weeks = $1,473). To obtain a proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. measure of employment with self-sufficiency, we calculate the number of post-transition months in which each individual was employed, not receiving benefit income, and earning at or above this threshold. On average, the BTW group were in employment with earnings above the threshold for 54% of the first six months, just under half of the second six months and just under half of the second year. These percentages are substantially lower than the percentages of time classified as "sustained employment" without any minimum earnings threshold. The gap indicates that either a considerable number of people were working part-time hours or that part-month employment was common. Earnings growth. Our main measure of earnings growth is the ratio of average monthly earnings in the second, third and fourth half years after the transition, to earnings in the first half year (conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. upon being employed for at least one month of each sequence). Earnings growth is measured in this way to avoid excluding people who may have been temporarily out of work in a particular post-transition month. The median earnings increase for those who were still employed in months 7-12 (shown in the third section of Table 5) was 1.1%. The median increase for those who were still employed in months 13-18 was 6.1%. Just over four-fifths (82%) of the BTW group had some employment during the final six months of the observation period. The median increase for these people was 8.5%. Note that the earnings growth recorded here could have come from increases in the number of hours worked per week, increases in the regularity of employment (in terms of weeks worked per month), pay rate changes, or all three. About 71% of the study group had some off-benefit employment in the final six months of the post-transition period. The earnings growth rate of this group, counting only earnings during months of off-benefit employment, was 11.7%. Job retention. Job retention measures are measures of the extent to which people stayed with a single employer and worked continuously for that employer during the post-transition period. There are two dimensions--continuity of the employment relationship and the duration of job spells within that employment relationship. A selection of different measures is shown in the fourth section of Table 5. The first post-transition job was retained for 12.2 months on average. The average number of employers in the post-transition period was 2.7, while the average number of distinct job spells was 3.5. The average duration of post-transition employment relationships (counting only time falling within the 24-month observation window) was 11.6 months, and the average duration of job spells was 9.3 months. Note that the two-year window of observation used in this analysis cuts short any job that was in progress at 24 months and leads to lower average durations than if the data were not censored cen·sor n. 1. A person authorized to examine books, films, or other material and to remove or suppress what is considered morally, politically, or otherwise objectionable. 2. in this way. Further receipt of benefit income. Indicators of whether any further benefit income was received in the post-transition period were calculated. These show that 27% of the BTW group had received some further benefit income by the end of the first six months, 44% had done so by the end of the first year, and 54% had done so by the end of the second year. The rate of return was fastest in the short term but declining as time passed. Those who returned to a benefit received 10.1 months of further benefit income, on average. Differences in outcomes by duration of the reference benefit spell. Table 5 also presents information on the extent of variation in employment outcomes by the duration of the reference benefit spell (the one immediately prior to the transition to work). Forty-two per cent of the entire BTW group had been continuously on a benefit for just 3-6 months. The outcomes of this "short spell duration" subgroup sub·group n. 1. A distinct group within a group; a subdivision of a group. 2. A subordinate group. 3. Mathematics A group that is a subset of a group. tr.v. are shown in the second column, while the outcomes of those with benefit spell durations of 24 months or longer (21.9%) are shown in the third column. As one would expect, people in the lowest benefit-spell duration group generally had better outcomes than those in the highest duration group. However, the differences are relatively small. For example, the lowest duration group spent 16.7 months of the two-year follow-up period employed and off benefits (or 70% of the time), while the highest duration group spent 15.1 months employed and off benefits (or 63% of the time). Analysis of Factors Associated with Successful Post-Transition Outcomes The factors associated with variations in employment outcomes following a transition from benefits to employment were examined using regression methods, drawing on three sets of information: data on the employment and benefit receipt histories of the study population; data on their mobility between employers; and data on the firm-level characteristics of those employers. A brief summary of the findings follows (see Dixon Dixon, city (1990 pop. 15,144), seat of Lee co., N Ill., on the Rock River; founded 1830, inc. 1857. Corn and soybeans are grown, cattle are raised, and there is light manufacturing. and Crichton Crichton resourceful servant proves more than equal to his employers when household is marooned. [Br. Lit.: The Admirable Crichton] See : Butler Crichton 2006 for the analysis). The results offer evidence that demographic characteristics, recent employment experiences, the timing and circumstances of the benefit-to-work transition, and employer characteristics are all associated to some degree with variations in outcomes. People with shorter benefit spell durations and greater employment experience before and during their benefit spell tended to have higher rates of employment retention and higher earnings, although these effects were relatively small. There were quite substantial variations in employment retention rates according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the month of the job start, which may reflect seasonal variations in the types of jobs that are taken up by former beneficiaries. People who stayed with a benefit-spell employer or returned to a pre-benefit-spell employer tended to have poorer employment and earnings outcomes than people who changed their employer at the time of the benefit-to-work transition (controlling for other measured personal and employer characteristics). For example, individuals who remained with a benefit-spell employer had 1.6 fewer months of employment with earnings above $1,500 a month in the two-year post-transition period than those who started work with a new employer (a difference of 12%). Individuals who returned to a pre-benefit employer had 2.0 fewer months of employment with earnings above $1,500 (a difference of 15%). The monthly earnings of these two groups in the first six months after the transition to work were 16% and 6% lower, respectively, than those of people who changed their employer. People who changed their employer during the two years after the transition off a benefit also tended to have poorer employment and earnings outcomes than those who stayed with one employer. Their average monthly earnings in the initial post-transition period were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 11% lower and their earnings growth over the first two years was approximately 16% lower. These "employer mobility" effects could be partly due to correlations with unmeasured individual characteristics--for example, people who continued to work for a benefit-spell employer could have had poorer employment outcomes for other reasons such as lower skills or constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. on the hours they could work. The negative coefficients on some of these "employer mobility" variables do become smaller in our fixed effect estimates, (7) but they do not disappear, leaving open the possibility of some causal causal /cau·sal/ (kaw´z'l) pertaining to, involving, or indicating a cause. causal relating to or emanating from cause. effect between changes of employer and employment or earnings outcomes. Employer characteristics were correlated cor·re·late v. cor·re·lat·ed, cor·re·lat·ing, cor·re·lates v.tr. 1. To put or bring into causal, complementary, parallel, or reciprocal relation. 2. with the employment and earnings outcomes of the BTW group. The most substantive of these effects came from the employer's average monthly pay. For example, a 10% increase in the average pay per employee of the first post-benefit employer is associated with 12.5 additional days of employment with earnings over the $1,500 threshold; a 4.1% increase in average monthly earnings; and a 2.1% increase in earnings growth, over the two-year follow-up period. Variations in outcomes according to the employer's industry were also relatively large. The effects of these employer characteristics persist in Verb 1. persist in - do something repeatedly and showing no intention to stop; "We continued our research into the cause of the illness"; "The landlord persists in asking us to move" continue fixed-effect estimates of individuals' earnings and earnings growth, suggesting they are not simply due to differences in unmeasured time-invariant individual characteristics such as educational level. One possible interpretation of the results on employer characteristics is that getting a job with a "higher quality" employer is one of the factors contributing to retention and advancement A gift of money or property made by a person while alive to his or her child or other legally recognized heir, the value of which the person intends to be deducted from the child's or heir's eventual share in the estate after the giver's death. in the labour market. This would be consistent with results from other studies in which more discriminating dis·crim·i·nat·ing adj. 1. a. Able to recognize or draw fine distinctions; perceptive. b. Showing careful judgment or fine taste: methods have been used to identify employer effects on earnings and employment retention (such as Andersson et al. 2005). However, there are other possible interpretations. The employer variables could be correlated with job characteristics that are not measured in LEED, such as occupation, biasing our estimates. In addition, our fixed-effect analysis does not rule out any possible effects that may have come from individual characteristics that were not constant during the follow-up period. Comparison of the Employment Outcomes of the Study and Comparison Groups One of the objectives of the study was to identify whether the employment outcomes of former beneficiaries are substantially different from those of non-beneficiary job entrants (NBJE). One motive motive or motif (mōtēf`), in music, a short phrase or passage of two or more notes and repeated or elaborated throughout the composition. The term is usually used synonymously with figure. for comparing the employment outcomes of former beneficiaries and non-beneficiaries, and estimating the size of the "outcomes gap", is to better understand the extent to which former beneficiaries may have special employment assistance needs. Comparative statistics on the outcomes of non-beneficiary job entrants are presented in Table 6. The outcomes of the BTW study population are shown in the first column. The second column shows the outcomes of the non-beneficiary job entrant comparison group (NBJE), while the third column gives data for non-beneficiary job entrants who came from low employment or out of the labour force (NBJE-2). These groups are defined above in Table 1. As before, the observation period for the BTW group is the 24 months following the end of the reference benefit spell. The observation period for the NBJE groups is 24 months starting with the first month of the reference job. Overall, the similarities in the employment outcomes of the BTW and first non-beneficiary comparison group (NBJE) shown in Table 6 are more striking than the differences. Based on the simple comparison of group means and medians, our study population of former beneficiaries remained in employment for almost as long as the NBJE group and were almost as likely to earn over $1,500 a month. Although the benefit-to-work group had poorer employment retention outcomes on many (although not all) of the measures shown, the differences are relatively small. The two groups had similar numbers of jobs and tenure tenure, in education tenure, in education, a guarantee of the permanence of a college or university teacher's position, awarded upon successful completion of a probationary period, usually seven years. patterns in the two years following job start. The first job durations of former beneficiaries were relatively short, but this was also the case for non-beneficiary job entrants. The benefit-to-work group worked for an average of 2.7 employers in two years, but this was only slightly higher than the mean number of employers for the NBJE comparison group. One interpretation of the overall similarity Similarity is some degree of symmetry in either analogy and resemblance between two or more concepts or objects. The notion of similarity rests either on exact or approximate repetitions of patterns in the compared items. in the employment retention rates of the former beneficiary beneficiary Person or entity (e.g., a charity or estate) that receives a benefit from something (e.g., a trust, life-insurance policy, or contract). A primary beneficiary receives proceeds from a trust or insurance policy before any other. and non-beneficiary groups is that the outcomes of both groups reflect the existence of a great deal of worker turnover and movement in and out of the labour market. The dynamic nature of the labour market is particularly evident when we focus on new jobs and new hires, as opposed op·pose v. op·posed, op·pos·ing, op·pos·es v.tr. 1. To be in contention or conflict with: oppose the enemy force. 2. to continuing jobs and people holding continuing jobs. The short-lived nature of many new jobs is worth bearing in mind when forming retention goals or expectations for people who are moving from means-tested benefits to employment. Some significant differences are evident from the comparison. Former beneficiaries experienced less earnings growth in the two years following their transition (although this is not the case if we only consider earnings in the months when individuals were not also receiving benefit income). Former beneficiaries were much more likely than the non-beneficiary group to receive further benefit income. A comparison of column 1 with column 3 indicates that the BTW group had higher rates of employment retention and substantially higher monthly earnings than people who were moving from non-employment or low employment situations into new jobs (NBJE-2). The latter group was younger in age composition and had much less recent employment experience, so the fact that it had poorer employment outcomes is not particularly surprising. Because the study population of former beneficiaries differs from the non-beneficiary comparison groups in its demographic characteristics and recent employment experiences, we would not expect its outcomes to be exactly the same. As part of the study, we also used the information that was available about these group differences to provide a more rigorous comparison of outcomes. We attempted to identify whether there is still an unexplained unexplained Adjective strange or unclear because the reason for it is not known Adj. 1. unexplained - not explained; "accomplished by some unexplained process" difference in outcomes associated with moving into work from a benefit, once the effects of measured demographic characteristics, recent employment experience, and other factors are controlled for. An unexplained outcome gap might be interpreted Translated from source code into machine code one line at a time. See interpreted language and interpreter. interpreted - interpreter as evidence that former beneficiaries are relatively disadvantaged This article or section may contain original research or unverified claims. Please help Wikipedia by adding references. See the for details. This article has been tagged since September 2007. in the labour market. The results of that analysis were enlightening en·light·en tr.v. en·light·ened, en·light·en·ing, en·light·ens 1. To give spiritual or intellectual insight to: but not particularly conclusive Determinative; beyond dispute or question. That which is conclusive is manifest, clear, or obvious. It is a legal inference made so peremptorily that it cannot be overthrown or contradicted. . Overall, we are not able to provide a conclusive answer to the question of whether former beneficiaries have significantly poorer employment outcomes than non-beneficiaries. We have simply provided some initial estimates of the size of the gap. SUMMARY AND DISCUSSION This study used data from LEED to examine the employment and earnings outcomes of people who made a transition from a working-aged benefit to unsupported employment, during the following two years. The results indicate that people who made a benefit-to-employment transition tended to remain employed for much of the following two years. People in the benefit-to-work study group were employed and off benefits for 16 months out of 24 on average, or for 66% of the first two years. On average, people in the benefit-to-work study population also experienced moderate earnings growth. Approximately 71% had some off-benefit employment during the final six months of the follow-up period. On average, the off-benefit earnings of this group were 11.7% higher than at the start of the follow-up period. That earnings growth could have come from increases in hours worked per month, increases in wage rates or a combination of both. These results can be interpreted positively. Some other aspects of post-transition employment patterns are less positive, however. Part-time and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. part-month employment appears to have been common. At any given time in the two years following the transition off a benefit, around one-third of those with jobs were earning less than $1,500 per month, indicating that they were probably working on a part-time or part-month basis. Job durations were relatively short. On average, the BTW study group had 2.7 employers and 3.5 job spells in the two years after the transition. More than half received further benefit income. The analysis of factors associated with "successful" outcomes indicate that demographic characteristics, recent employment experiences, the timing and circumstances of the benefit-to-work transition, and employer characteristics are all associated to some degree with variations in outcomes. The evidence on employer characteristics is particularly interesting. People who initially got jobs in firms where average monthly earnings were relatively high tended to have more sustained employment in the follow-up period, higher earnings, and better earnings growth. There were also some quite significant industry variations in outcomes (controlling for other factors). The evidence suggests that getting a job with a "higher quality" employer may facilitate retention and advancement in the labour market. In our estimates, the effects of employer characteristics persisted in fixed effect specifications, suggesting they were not simply due to differences in unmeasured time-invariant individual characteristics, such as educational level. However, there are some other possible explanations for the associations between employer characteristics and individual outcomes that we did not rule out in the analysis. The employment patterns of the benefit-to-work transition group were, in many respects, broadly similar to those of non-beneficiary job entrants. Both groups tended to have short job durations, multiple employers in the follow-up period, and relatively low average monthly earnings. Rates of earnings growth were broadly similar. The short-lived nature of many new jobs is worth bearing in mind when the employment outcomes of former beneficiaries are evaluated, and when thinking about the level of assistance that may be required to help beneficiaries remain in work and off benefit. The employment retention of the benefit-to-work study group is likely to have been assisted by the favourable labour market environment of the time, as 2001-2004 was a period of strong employment growth and low unemployment. This may have helped the former beneficiaries to move from their first post-benefit job to second and subsequent jobs. Given the favourable labour market environment and the study group's reasonably high rates of employment in the post-transition period, it is somewhat surprising that the proportion that returned to a benefit was also high. Our comparison with non-beneficiary job entrants suggests that the former beneficiaries did not have substantially greater difficulty remaining in work than the non-beneficiaries, yet they were far more likely to receive benefit income in the follow-up period. This difference points to the likely existence of differences in income needs and/or eligibility for benefit income. It also highlights the importance of employment assistance strategies that help former beneficiaries move into jobs that offer higher wages and/or provide greater long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. security of earnings, if they are to become and remain self-sufficient self-suf·fi·cient adj. 1. Able to provide for oneself without the help of others; independent. 2. Having undue confidence; smug. self in the long run. REFERENCES Andersson, F., H.J. Holzer Holzer is the surname of:
Sage was born at Verona in Oneida County, New York. He received a public school education and worked as a farm hand until he was 15, when he became an errand boy in a grocery conducted Foundation, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Dixon, S. and S. Crichton (2006) "Successful benefit-to-work transitions? The longer-term outcomes of people who move from a working-age benefit to employment" unpublished research paper, Statistics New Zealand Statistics New Zealand (In Māori, Tatauranga Aotearoa) is the state sector organisation of New Zealand which is responsible for the country's official statistics, under the authority of the 1975 Statistics Act. , Wellington Wellington, city (1996 pop. 157,647; urban agglomeration 334,051), capital of New Zealand, extreme S North Island, on Port Nicholson, an inlet of Cook Strait. . Holzer, H.J., J.I. Lane and L. Vilhuber (2004) "Escaping low earnings: The role of employer characteristics and changes" Industrial and Labor Relations Review Industrial and Labor Relations Review is a publication of the Cornell University School of Industrial and Labor Relations. It is an interdisciplinary journal publishing original research on all aspects of labor relations. , 57(4):560-78. Hyslop, D., S. Stillman Stillman is a surname, and may refer to:
Johnson, A. (2002) Job Retention and Advancement in Employment: Review of Research Evidence, Department of Work and Pensions, London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. . Statistics New Zealand (2003) Linked Employer-Employee Data Project: Privacy Impact Assessment, Statistics New Zealand, Wellington, www.stats.govt.nz/NR/ rdonlyres/F5025B36-85D8-4464-B683-CE070FFC FFC Fleet Forces Command FFC Fédération Française de Cardiologie FFC Flexible Flat Cable FFC Financial and Fiscal Commission (South Africa) FFC Flat-Field Correction FFC Francis Ford Coppola (movie director) 4807/0/LEEDPrivacyImpact Assessment.pdf. Wehipeihana, N. and R. Pratt (2002) A Focus on Employment Retention: A Meta-Analysis meta-analysis /meta-anal·y·sis/ (met?ah-ah-nal´i-sis) a systematic method that takes data from a number of independent studies and integrates them using statistical analysis. of Three Pilot Programmes Designed to Support Benefit Recipients to Take Up and Retain Employment, Report to the Department of Labour, Wellington, www.dol.govt.nz/ publications. Sylvia Sylvia may refer to:
Sarah Crichton Department of Labour and Statistics New Zealand (1) Acknowledgements This paper is based on a presentation to the Social Policy, Research and Evaluation Conference, 3-5 April 2007, Wellington, New Zealand. This work was undertaken while the authors were on secondment Noun 1. secondment - a speech seconding a motion; "do I hear a second?" endorsement, indorsement, second agreement - the verbal act of agreeing 2. to Statistics New Zealand. The support of Statistics New Zealand is gratefully acknowledged. We would like to thank Marc de Boer De Boer or de Boer can refer to: In football:
or Julian the Apostate Latin Julianus Apostata orig. Flavius Claudius Julianus (born AD 331/332, Constantinople—died June 26/27, 363, Ctesiphon, Mesopotamia) Roman emperor (361–363), noted scholar and military leader. Silver, Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Stillman and Joss Stroombergen for their valuable comments on earlier versions of this research. Any views expressed are those of the authors and do not purport To convey, imply, or profess; to have an appearance or effect. The purport of an instrument generally refers to its facial appearance or import, as distinguished from the tenor of an instrument, which means an exact copy or duplicate. PURPORT, pleading. to represent those of Statistics New Zealand or the Department of Labour. Any errors are the responsibility of the authors. Correspondence Email: sylvia.dixon@dol.govt.nz (2) See for example Wehipeihana and Pratt (2002) for a New Zealand example and Johnson (2002) for British and American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of examples. (3) The complete research paper can be downloaded from the Statistics New Zealand website at www.stats. govt.nz/leed/default.htm (4) Access to the data used in this study was provided by Statistics New Zealand under conditions designed to give effect to the security and confidentiality Restrictions on the accessibility and dissemination of information. Confidentiality is one of the six fundamental components of information security (see Parkerian Hexad). provisions of the Statistics Act 1975. Only people authorised Adj. 1. authorised - endowed with authority authorized lawful - conformable to or allowed by law; "lawful methods of dissent" legitimate - of marriages and offspring; recognized as lawful by the Statistics Act 1975 are allowed to see data about a particular person or firm. The results are based in part on tax data supplied by Inland Revenue Inland Revenue Noun (in Britain and New Zealand) a government department that collects major direct taxes, such as income tax Noun 1. to Statistics New Zealand under the Tax Administration Act. These tax data must be used only for statistical purposes, and no individual information is published or disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in any other form, or provided back to Inland Revenue for administrative or regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. purposes. Any discussion of data limitations or weaknesses is in the context of using the Linked Employer-Employee Database (LEED) for statistical purposes, and is not related to the ability of the data to support Inland INLAND. Within the same country. 2. It seems not to be agreed whether the term inland applies to all the United States or only to one state. It has been holden in Now York that a bill of exchange by one person in one state, on another person in another, is an Revenue's core operational requirements (programming) operational requirements - Qualitative and quantitative parameters that specify the desired capabilities of a system and serve as a basis for determining the operational effectiveness and suitability of a system prior to deployment. . Careful consideration has been given to the privacy, security and confidentiality issues associated with using tax data in this project. Any person who had access to the unit record data has certified See certification. that they have been shown, have read and have understood Section 87 (Privacy and Confidentiality) of the Tax Administration Act. A full discussion can be found in the LEED Project Privacy Impact Assessment paper (Statistics New Zealand 2003). (5) Note that this approach differs from the official one and does not count all short lived benefit-to-work transitions. (6) Note that due to the study design and the monthly aggregation of LEED payments data, all members of the BTW group had to be employed and off benefits for at least one complete month (the first post-transition month). Note also that our results are influenced by the calendar-month structure of LEED data. If weekly data on labour market activity were available, short gaps between jobs could be identified and our estimated employment rates would probably be lower. (7) In the fixed-effect regression estimates, the effects of persistent Permanent. See persistent data, persistent name and persistent object. persistent - persistence differences between individuals (such as differences in educational level) were removed.
Table 1 Definitions of the Study and Comparison Groups
Group Criteria
Study population
Benefit-to-work transition * Received benefit payments for at least
group three continuous months
(BTW) * Benefit income then ceased for at
least one calendar month
* Employed in the first post-benefit
month
* The first post-benefit month was in
the year from April 2001 to March 2002
* Aged 15-59 years at BTW transition
Benefit-to-work transition * Same as above, but was employed and
group 2 (BTW-2) off benefits for at least the first
three months after the reference
benefit spell ended
Non-beneficiary comparison groups
Non-beneficiary job * Started a new waged or salaried job in
entrants (NBJE) the year from April 2001 to March 2002
* Had no benefit income in the previous
two years
* Had not worked for the new employer in
the previous 3 months
* Aged 15-59 years at month of job start
Non-beneficiary job * Started a new waged or salaried job
entrants who came from in the year from April 2001 to
low or no employment March 2002
(NBJE-2) * Either non-employed or earning less
than $1,500 a month in the three
months immediately before starting the
new job
* Had no benefit income in those prior
three months
* Had not worked for the new employer in
the previous 3 months
* Aged 15-59 years at month of job start
Table 2 Attributes of the study population and beneficiary comparison
groups
Study
population
Benefit-to-work
transition group job
(BTW)
Personal attributes
Female (%) 47.6
Mean age (years) 31.6
Aged 15-24 (%) 35.1
Aged 25-49 (%) 56.7
Aged 50-59 (%) 8.2
Living in Auckland (%) 23.2
Reference benefit spell
Duration of reference benefit spell
in months (censored at 24) 11.4
Months employed during reference
benefit spell (censored at 24) 4.5
Average monthly benefit payments
during reference benefit spell * ($) 645
Average monthly earnings if employed
during reference benefit spell * ($) 809
Benefit receipt history--24 months before transition to employment
Had some income support (%) 100.0
Income support for all 24 months (%) 21.9
Months of benefit receipt 14.4
Recent employment experience--year before transition to employment
Employed at least 10 months of the
past 12 (%) 33.9
Employed at least 10/12 months with
earnings [greater than or equal to]
$1,500 per month (%) 4.5
Employment history--24 months before transition to employment
Had some employment experience (%) 92.1
Months employed 12.9
Months employed and off benefits 6.0
Number of employers, if employed 2.8
Number of separate job spells,
if employed 3.6
Average duration of employment
relationships, if employed (months) 8.2
Average duration of job spells,
if employed (months) 5.9
Average earnings during months of
employment * ($) 1,177
Average earnings during months when
employed and off benefit * ($) 1,573
Number of individuals 110,450
Outcome comparison groups
Non- Non-
beneficiary beneficiary
entrants job entrants
(NBJE) who came from
low or no
employment
Personal attributes (NBJE-2)
Female (%) 50.6 55.0
Mean age (years) 31.7 29.2
Aged 15-24 (%) 35.2 45.8
Aged 25-49 (%) 54.5 46.0
Aged 50-59 (%) 10.3 8.2
Living in Auckland (%) 32.2 31.5
Reference benefit spell
Duration of reference benefit spell
in months (censored at 24) ... ...
Months employed during reference
benefit spell (censored at 24) ... ...
Average monthly benefit payments
during reference benefit spell * ($) ... ...
Average monthly earnings if employed
during reference benefit spell * ($) ... ...
Benefit receipt history--24 months before transition to employment
Had some income support (%) 0.0 10.5
Income support for all 24 months (%) 0.0 0.0
Months of benefit receipt 0.0 0.7
Recent employment experience--year before transition to employment
Employed at least 10 months of the
past 12 (%) 46.5 16.1
Employed at least 10/12 months with
earnings [greater than or equal to]
$1,500 per month (%) 30.3 0.0
Employment history--24 months before transition to employment
Had some employment experience (%) 80.2 67.8
Months employed 13.7 8.2
Months employed and off benefits 13.7 8.0
Number of employers, if employed 2.2 2.1
Number of separate job spells,
if employed 3.1 3.0
Average duration of employment
relationships, if employed (months) 12.1 9.0
Average duration of job spells,
if employed (months) 9.8 6.3
Average earnings during months of
employment * ($) 1,963 811
Average earnings during months when
employed and off benefit * ($) 1,963 818
Number of individuals 581,020 378,170
* Group median. All income variables are in March 2004 quarter dollar
values.
Symbol: ... = not applicable
Table 3 Type of Transition to Employment
Study population
BTW Stayed Returned
with a to a
benefit previous
spell employer
employer
Percentage of BTW group with
different transition types ... 30.4 11.8
Personal attributes
Female (%) 47.6 59.4 40.5
Mean age (years) 31.6 33.3 33.3
Mean monthly earnings
if employed during prior
benefit spell * ($) 809 1070 696
Employment level three months prior to the transition
Not employed (%) 47.5 0.0 68.9
Earned less than $1,500 (%) 38.2 64.5 25.7
Earned $1,500 or above (%) 14.3 35.5 5.4
Employment level in first complete month after the transition
Earned less than $1,500 (%) 36.5 45.0 28.7
Earned $1,500 or above (%) 63.5 55.0 71.3
Mean monthly earnings in
first complete post-transition
month * ($) 1,796 1,620 2,125
Type of transition (using earnings threshold of $1,500 per month)
Below threshold to above (%) 19.7 25.1 16.3
Below threshold before and
after (%) 18.4 39.4 9.4
Not employed to above
threshold (%) 32.0 0.0 50.7
Not employed to below
threshold (%) 15.5 0.0 18.2
Above threshold before and
after (%) 11.8 29.9 4.2
Above threshold to below (%) 2.5 5.7 1.2
Number of individuals 110,450 33,530 13,010
Outcome comparison
groups
New NBJE NBJE-2
employer
Percentage of BTW group with
different transition types 57.9 ... ...
Personal attributes
Female (%) 42.8 50.6 55.0
Mean age (years) 30.3 31.7 29.2
Mean monthly earnings
if employed during prior
benefit spell * ($) 633
Employment level three months prior to the transition
Not employed (%) 68.1 45.9 76.3
Earned less than $1,500 (%) 26.9 17.3 23.7
Earned $1,500 or above (%) 5.0 36.8 0.0
Employment level in first complete month after the transition
Earned less than $1,500 (%) 33.5 43.3 64.3
Earned $1,500 or above (%) 66.5 56.7 35.7
Mean monthly earnings in
first complete post-transition
month * ($) 1,830 1,808 1,000
Type of transition (using earnings threshold of $1,500 per month)
Below threshold to above (%) 17.6 6.0 6.6
Below threshold before and
after (%) 9.3 11.3 17.1
Not employed to above
threshold (%) 45.0 18.0 29.1
Not employed to below
threshold (%) 23.1 27.9 47.2
Above threshold before and
after (%) 3.9 32.7 0.0
Above threshold to below (%) 1.1 4.1 0.0
Number of individuals 63,910 581,020 378,170
* Group median.
Note: All income variables are in March 2004 quarter dollar values.
Employment status is assessed at three months prior to the transition
off benefits (study population) or job start (comparison group) and
in the first "complete" month following these transitions. We avoid
using earnings data for the first month of a new job because it may
not be based on a full month of employment. We assess prior employment
status at three months prior to the transition/job start because there
is typically an overlap between the end of the reference benefit
spell and the beginning of the first post-benefit job spell.
Symbol: ... = not applicable
Table 4 Median Employer Characteristics
Benefit-to-work transition group (BTW)
Main First Final
on-benefit post- post-
job transition transition
job job
Firm size (no. employees) * 53 57 60
Average monthly pay per 1,708 2,025 2,139
employee ($) *
Expansion/contraction rate * 0.02 0.04 0.05
Turnover rate * 0.68 0.63 0.58
Industry (%)
Agriculture, fishing & 12.2 11.1 10.6
forestry
Mining 0.1 0.1 0.1
Manufacturing 12.6 16.5 17.3
Electricity, gas & water 0.1 0.2 0.2
Construction 4.2 5.1 5.4
Wholesale trade 3.2 4.1 4.3
Retail trade 12.9 12.2 12.3
Accommodation, cafes & 10.3 7.9 7.5
restaurants
Transport & storage 3.9 3.6 3.9
Communication 1.2 1.1 1.1
Finance & insurance 0.9 1.2 1.3
Property & business 14.5 12.9 12.5
services
Government 1.5 2.3 2.5
administration
Education 3.5 3.8 3.7
Health & community 8.7 7.6 7.9
services
Cultural & recreation 2.5 2.3 2.2
services
Personal & other services 2.9 3.1 3.2
Industry missing 5.0 5.0 4.1
Number of individuals 78,880 110,450 89,890
All employee Non-
Job starts in beneficiary
2001/02 job entrants
(NBJE)
Firm size (no. employees) * 31 38
Average monthly pay per 1,788 2,078
employee ($) *
Expansion/contraction rate * 0.07 0.08
Turnover rate * 0.82 0.68
Industry (%)
Agriculture, fishing & forestry 17.7 11.2
Mining 0.1 0.1
Manufacturing 10.1 10.4
Electricity, gas & water 0.2 0.2
Construction 4.1 4.7
Wholesale trade 4.3 5.2
Retail trade 10.7 12.7
Accommodation, cafes & 8.4 8.2
restaurants
Transport & storage 3.2 3.3
Communication 1.1 1.0
Finance & insurance 1.6 2.4
Property & business services 14.7 15.0
Government administration 2.0 2.3
Education 5.5 6.2
Health & community services 6.5 7.1
Cultural & recreation services 2.9 2.8
Personal & other services 2.4 2.6
Industry missing 4.7 4.7
Number of individuals 1,454,690 568,390
* Group median.
Note: All income variables are in March 2004 quarter dollar values.
The final post-transition job is defined as the employer who paid the
highest total earnings 19-24 months after the transition. "All employee
job starts" are defined at job level and include multiple records for
people who started more than one job in the year. "Non-beneficiary job
entrants" are defined at person level, with only one record per person.
Table 5 Outcomes of the Benefit-to-Work Transition Group
Study population
Total Reference Reference
benefit- benefit benefit
to-work spell spell
transition duration of duration of
group (BTW) 3-6 months 24+ months
Sustained employment
Months employed and off
benefits during months 1-6 4.9 5.0 4.7
(Percentage of time) (80.9) (84.0) (78.4)
Months employed and off
benefits during months 7-12 3.7 3.9 3.6
(Percentage of time) (62.4) (65.1) (60.4)
Months employed and off
benefits during months 13-24 7.3 7.8 6.7
(Percentage of time) (60.7) (65.0) (56.1)
Months employed and off
benefits during first two
years 15.9 16.7 15.1
(Percentage of time) (66.2) (69.8) (62.8)
Months employed during
months 1-6 5.3 5.4 5.3
Months employed during
months 7-12 4.5 4.6 4.5
Months employed during
months 13-24 8.6 8.8 8.4
Months employed during first
two years 18.4 18.7 18.3
(Percentage of time) (76.6) (78.1) (76.1)
Continuously employed and off
benefit for months 1-12 (%) 42.1 42.2 43.8
Continuously employed and off
benefit for months 1-24 (%) 28.8 29.2 30.1
Self-sufficiency in employment
Months with earnings of
$1,500+ and no benefit
income--mths 1-6 3.3 3.3 3.1
(Percentage of time) (54.2) (55.5) (52.0)
Months with earnings of
$1,500+ and no benefit 2.8 2.9 2.6
income--mths 7-12
(Percentage of time) (46.0) (47.8) (43.8)
Months with earnings of
$1,500+ and no benefit
income--mths 13-24 5.7 6.1 5.1
(Percentage of time) (47.1) (50.7) (42.8)
Months with earnings of
$1,500+ and no benefit
income--first 2 yrs 11.7 12.3 10.9
(Percentage of time) (48.6) (51.2) (45.3)
Earnings growth (conditional upon being employed)
Average monthly earnings in
the first half year * ($) 1,760 1,816 1,685
Ratio of average monthly
earnings in 2nd post-
transition 1/2-yr to 1st * 1.011 1.023 1.003
Ratio of average monthly
earnings in 3rd post-
transition 1/2-yr to 1st * 1.061 1.080 1.036
Ratio of average monthly
earnings in 4th post-
transition 1/2-yr to 1st * 1.085 1.110 1.060
Sustained job spells
Duration of first job
(months, censored at 24) 12.2 12.1 13.2
Number of employers 2.7 2.8 2.4
Number of separate job spells 3.5 3.6 3.1
Average duration of employment
relationships (months) 11.6 11.5 12.4
Average duration of job
spells (months) 9.3 9.1 10.2
Further benefit receipt
Benefit income in first
6 months (%) 27.3 28.3 29.3
Benefit income in first
year (%) 43.7 41.6 45.0
Benefit income in first
2 years (%) 54.4 51.7 55.9
Number of individuals 110,450 45,940 24,210
* Group median.
Note: All income variables are in March 2004 quarter dollar values.
Table 6 Outcomes of the Benefit-to-Work and Non-Beneficiary Comparison
Groups
Benefit- Non- Non-
to-work beneficiary beneficiary
transition job entrants job entrants
group (NBJE) who came
(study from low
population) or no
employment
(NBJE-2)
Sustained employment
Months employed and off
benefits during months 1-6 4.9 5.1 4.6
(Percentage of time) (80.9) (84.3) (76.3)
Months employed and off
benefits during months 7-12 3.7 4.4 3.7
(Percentage of time) (62.4) (73.0) (61.1)
Months employed and off
benefits during months
13-24 7.3 8.4 7.1
(Percentage of time) (60.7) (70.3) (59.6)
Months employed and off
benefits during first two
years 15.9 17.9 15.4
(Percentage of time) (66.2) (74.5) (64.1)
Self-sufficiency in employment
Months with earnings of
$1,500+ and no benefit
income--mths 1-6 3.3 3.1 1.8
(Percentage of time) (54.2) (51.9) (29.7)
Months with earnings of
$1,500+ and no benefit
income--mths 7-12 2.8 3.0 1.8
(Percentage of time) (46.0) (50.3) (29.3)
Months with earnings of
$1,500+ and no benefit
income--mths 13-24 5.7 6.1 4.0
(Percentage of time) (47.1) (51.1) (33.0)
Months with earnings of
$1,500+ and no benefit
income--first 2 yrs 11.7 12.3 7.5
(Percentage of time) (48.6) (51.1) (31.3)
Earnings growth, conditional upon being employed
Average monthly earnings in
the first half year * ($) 1,760 1,804 1,015
Ratio of average monthly
earnings in 2nd post-
transition half year to
1st * 1.011 1.028 1.080
Ratio of average monthly
earnings in 3rd post-
transition half year to
1st * 1.061 1.083 1.198
Ratio of average monthly
earnings in 4th post-
transition half year to
1st * 1.085 1.116 1.282
Earnings growth, conditional upon being employed and off benefit
Average monthly earnings in
the first half year * ($) 1,827 1,819 1,025
Ratio of average monthly
earnings in 2nd post-
transition half year to
1st * 1.032 1.029 1.081
Ratio of average monthly
earnings in 3rd post-
transition half year to
1st * 1.082 1.084 1.201
Ratio of average monthly
earnings in 4th post-
transition half year to
1st * 1.117 1.119 1.288
Job retention
Duration of first job
(months, censored at 24) 12.2 9.5 8.0
Number of employers 2.7 2.5 2.5
Number of separate job
spells 3.5 3.4 3.4
Average duration of
employment relationships
(months) 11.6 11.6 10.6
Average duration of job
spells (months) 9.3 9.1 7.7
Further benefit receipt
Benefit income in first 6
months (%) 27.3 3.3 6.0
Benefit income in first
year (%) 43.7 5.9 9.8
Benefit income in first two
years (%) 54.4 10.4 15.9
Number of individuals 110,450 581,020 378,170
* Group median.
Note: All income variable are in March 2004 quarter dollar values.
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