Transitions from casual employment in Australia: The University of Melbourne

Investigating the Feasibility of Building an Add-On Component for the CAPITA Model to Analyse the Impact on Labour Supply of Income Support Policies

Description and objectives of the research
Treasury and the Department of Employment are now in the process of developing a static microsimulation model of taxes and transfers. The new analytical tool – which is to be called the Commonwealth Tax and Transfer model or CAPITA – is expected to be fully operational by the end of 2014. Notably, CAPITA will assume that labour supply behaviour remains invariant to policy change, and so will be unable to respond to one of the most frequently asked questions within the Department of Employment during the policy development process: what are the implications for labour supply and participation rates of proposed changes to income support policies? This project will consider the issues involved in developing an add-on module that will permit CAPITA to consider labour supply responses to policy change.

Contact
The Melbourne Institute contact for this project is Dr Justin van de Ven.

Progress
This project commenced in March 2014, and the final report is currently under review by the Department of Employment.

Melbourne Institute of Applied Economic and Social Research

Level 5, Faculty of Business and Economics Building
111 Barry Street
The University of Melbourne
Victoria 3010 Australia

Authoriser:
Director, Melbourne Institute of Applied Economic and Social Research

Maintainer:
Webmaster, Melbourne Institute of Applied Economic and Social Research

Date created:
27 September 2011
Last modified:
April 4, 2016 4:25 PM

Labour Economics and Social Policy

Investigating the Feasibility of Building an Add-On Component for the CAPITA Model to Analyse the Impact on Labour Supply of Income Support Policies