Does ‘Work for the Dole’ work?: an Australian perspective on work experience programmes

This study examines the effect of Work for the Dole (WfD), a community-based work experience programme, on transitions out of unemployment in Australia. To evaluate the WfD programme, a quasi-experimental exact matching approach is applied. Participation in the WfD programme is found to be associated with a large and significant adverse effect on the likelihood of exiting unemployment payments. The main potential explanation is the existence of a ‘lock-in’ effect whereby programme participants reduce job search activity.