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The impact of varying penalty values on compliance with unemployment payment requirements: An analysis using 2015/16 Australian National Data

Andrew Wright & Brian Dollery

Australian Journal of Labour Economics: a journal of labour economics and labour relations2020article
AJG 1ABDC B
Weight
0.39

Abstract

Existing empirical research on unemployment payment schemes has demonstrated that financial penalties affect unemployment payment recipients’ behaviour. However, limited empirical work exists on the effects of varying penalty values as well as compliance with requirements (as opposed to employment outcomes). In order to address this gap in the literature, this paper examines the extent to which higher-value penalties enhance unemployment payment recipients’ compliance with requirements. It does this using a natural experiment under Australian administrative rules, whereby identical recipients can face penalties varying in value by 100 per cent. Those receiving larger penalties were found to be significantly more likely to comply with requirements compared to those receiving smaller penalties. However, contrary to expectations, no evidence was found supporting earlier evidence that women respond more strongly to penalties than men.

2 citations

Cite this paper

@article{andrew2020,
  title        = {{The impact of varying penalty values on compliance with unemployment payment requirements: An analysis using 2015/16 Australian National Data}},
  author       = {Andrew Wright & Brian Dollery},
  journal      = {Australian Journal of Labour Economics: a journal of labour economics and labour relations},
  year         = {2020},
}

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The impact of varying penalty values on compliance with unemployment payment requirements: An analysis using 2015/16 Australian National Data

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Evidence weight

0.39

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.11 × 0.4 = 0.04
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.