The challenge
Analysis of administrative data on income support shows that a small number of groups are at substantially higher risk of long-term welfare dependence than others, which can subsequently lead to higher risk of intergenerational transmission of welfare dependence. The key challenge is to determine what interventions can be effective in breaking this welfare dependence by enabling at-risk groups to participate in education and develop the skills for successful transition to employment. This may first require the overcoming of non-vocational barriers and improvement in general wellbeing.
The research
Melbourne Institute researchers were part of the Trial Test and Learn Fund evaluation team with the Institute for Social Science Research at the University of Queensland, led by Professor Janeen Baxter.
The TTL Fund was established in 2016 to trial and evaluate new approaches aimed at early intervention for groups identified as being at risk of long-term welfare dependence. TTL funded 52 projects across 7 priority groups (young carers, young parents, young students, migrants and refugees, older unemployed people, at risk young people and working-age carers) and one “other“ group.
Administrative data on income support receipt and employment income while on income support were used in the impact analyses.
The impact
Within the relatively short length of the evaluation period, the impacts of TTL were fairly modest. Given the complex needs of many of the at-risk groups, more time may be needed before stronger impacts on employment outcomes and income support receipt are seen. E.g. for young parents, adjusting to life as a parent and ensuring their own and their child’s wellbeing are needed before education or employment are feasible objectives.
Our researchers
Melbourne Institute - Guyonne Kalb, Cain Polidano, Yi-Ping Tseng and David Ribar.
Department of Economics - Jeff Borland.
Many other researchers from the University of Queensland were involved.