Estimating the fiscal costs of long-term jobless families in Australia

    Research output: Contribution to journalArticle

    Abstract

    Despite substantial costs to society associated with the adverse consequences of joblessness, studies estimating actual costs are rare. This paper identifies the main costs to the Government of long-term jobless families in Australia. The costs were split into three groups: immediate support costs, immediate opportunity costs, and indirect/intergenerational costs. Using a microsimulation model, the paper estimates the fiscal costs, which include immediate support costs such as the welfare system, and the immediate opportunity costs such as potential revenue from the tax system. We estimate that welfare payments and lost taxation revenue from long-term joblessness cost the Government AU$5.55 billion per year.

    Original languageEnglish
    Pages (from-to)89-108
    Number of pages20
    JournalAustralian Journal of Social Issues
    Volume51
    Issue number1
    DOIs
    Publication statusPublished - 2016

    Cite this

    @article{ac751ff840c24a8b9e6da2aa1dbe0509,
    title = "Estimating the fiscal costs of long-term jobless families in Australia",
    abstract = "Despite substantial costs to society associated with the adverse consequences of joblessness, studies estimating actual costs are rare. This paper identifies the main costs to the Government of long-term jobless families in Australia. The costs were split into three groups: immediate support costs, immediate opportunity costs, and indirect/intergenerational costs. Using a microsimulation model, the paper estimates the fiscal costs, which include immediate support costs such as the welfare system, and the immediate opportunity costs such as potential revenue from the tax system. We estimate that welfare payments and lost taxation revenue from long-term joblessness cost the Government AU$5.55 billion per year.",
    keywords = "immediate support costs, inequality, jobless families, joblessness, opportunity costs",
    author = "Itismita Mohanty and Robert Tanton and Yogi Vidyattama and Linc Thurecht",
    year = "2016",
    doi = "10.1002/j.1839-4655.2016.tb00366.x",
    language = "English",
    volume = "51",
    pages = "89--108",
    journal = "Australian Journal of Social Issues",
    issn = "0157-6321",
    publisher = "Australian Council of Social Service",
    number = "1",

    }

    Estimating the fiscal costs of long-term jobless families in Australia. / Mohanty, Itismita; Tanton, Robert; Vidyattama, Yogi; Thurecht, Linc.

    In: Australian Journal of Social Issues, Vol. 51, No. 1, 2016, p. 89-108.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - Estimating the fiscal costs of long-term jobless families in Australia

    AU - Mohanty, Itismita

    AU - Tanton, Robert

    AU - Vidyattama, Yogi

    AU - Thurecht, Linc

    PY - 2016

    Y1 - 2016

    N2 - Despite substantial costs to society associated with the adverse consequences of joblessness, studies estimating actual costs are rare. This paper identifies the main costs to the Government of long-term jobless families in Australia. The costs were split into three groups: immediate support costs, immediate opportunity costs, and indirect/intergenerational costs. Using a microsimulation model, the paper estimates the fiscal costs, which include immediate support costs such as the welfare system, and the immediate opportunity costs such as potential revenue from the tax system. We estimate that welfare payments and lost taxation revenue from long-term joblessness cost the Government AU$5.55 billion per year.

    AB - Despite substantial costs to society associated with the adverse consequences of joblessness, studies estimating actual costs are rare. This paper identifies the main costs to the Government of long-term jobless families in Australia. The costs were split into three groups: immediate support costs, immediate opportunity costs, and indirect/intergenerational costs. Using a microsimulation model, the paper estimates the fiscal costs, which include immediate support costs such as the welfare system, and the immediate opportunity costs such as potential revenue from the tax system. We estimate that welfare payments and lost taxation revenue from long-term joblessness cost the Government AU$5.55 billion per year.

    KW - immediate support costs

    KW - inequality

    KW - jobless families

    KW - joblessness

    KW - opportunity costs

    UR - http://www.scopus.com/inward/record.url?scp=85027047603&partnerID=8YFLogxK

    U2 - 10.1002/j.1839-4655.2016.tb00366.x

    DO - 10.1002/j.1839-4655.2016.tb00366.x

    M3 - Article

    VL - 51

    SP - 89

    EP - 108

    JO - Australian Journal of Social Issues

    JF - Australian Journal of Social Issues

    SN - 0157-6321

    IS - 1

    ER -