Employment Outcomes of Work for the Dole: An Analysis of the DEWRSB Net Impact Report

Abstract

Since the data necessary to make a formal quantitative analysis of Work for the Dole employment outcomes is not available to researchers who are independent of Commonwealth Government Departments, this article examines the (then) Department of Employment, Workplace Relations and Small Business (DEWRSB) net impact report, finding in it a number of weaknesses. The combined effect of these is to inflate the estimated value for net impact but a corrected estimate is still higher than many consider likely. Any figure for the net impact estimate of an Australian labour market program can only be a broad indicator. This article argues that in the case of Work for the Dole the net impact is definitely positive and by more than a trivial amount.

Evidence-based policy: What sort of evidence do governments need?

“…Provide communities with quality projects that are of value to the community (Department of Employment, Workplace Relations and Small Business (DEWRSB), 1999 cited in Nevile and Nevile, 2003).…”

“…In addition to the potentially conflicting formal objectives, there were two unstated, but equally important, political objectives. The first was sending a message to the wider electorate that the government believed those receiving unemployment benefits, particularly young people, should do something to help their community, a belief that the government knew was shared by a significant majority of voters (Nevile and Nevile, 2003: 18). The second was to motivate unemployed young people to increase their job search activity, or enrol in formal training or education courses, or declare previously undeclared earnings by threatening them with the prospect of participation in a programme that was seen as an unattractive option.…”

“…The second was to motivate unemployed young people to increase their job search activity, or enrol in formal training or education courses, or declare previously undeclared earnings by threatening them with the prospect of participation in a programme that was seen as an unattractive option. While the Federal Government provided accurate information on the Centrelink website listing the full range of activities available to Work for the Dole participants, the government valued the compliance effect described above, and even after the programme had been operating for 5 years, many potential participants and members of the public still believed Work for the Dole offered nothing more than repetitive manual labour or unpleasant work such as cleaning public toilets or picking up used syringes (Nevile and Nevile, 2003: 23–25). Finally, for participants and most of the community organisations that developed and supervised Work for the Dole projects, the aim of the programme was not merely to ‘develop work habits’, but to find employment (Nevile and Nevile, 2003: 18).…”

“… 3. The research concluded that Work for the Dole had an employment net impact of around 10% (Nevile and Nevile, 2003: 49). …”

Compulsory work experience programs: hindrance or help?

“…This article reports on a review of a specific program in Australia (Work for the Dole) which not only appears to be more successful than similar programs overseas in helping disadvantaged youth make the transition from schooling to employment, but also does particularly well in helping unemployed through “soft outcomes”, such as increased self‐esteem, improved communication and interpersonal skills, which ameliorate some of the negative impacts of unemployment on personal well‐being. Starting with departmental data and taking account of selection, contamination and timing bias, Nevile and Nevile (2003, p. 49) reveals a net employment impact of Work for the Dole of around 10 per cent. That is, around 10 per cent of participants come off unemployment benefits as a result of participating in the program[2].…”