Incentives to Work: Replacement Ratios and the Cost of Job Loss Among Indigenous Australians.

The relationship between the social welfare system and employment incentives has received considerable attention in the literature. This paper uses data from the National Aboriginal and Torres Strait Islander Survey to consider these issues for indigenous Australians. Two measures are calculated, the replacement ratio which measures the expected gains from employment for those not in work and the cost of job loss which measures the expected costs of becoming unemployed for those in employment.