Jeff Borland. New finding: boosting JobSeeker wouldn’t keep Australians away from paid work

If JobSeeker was to climb A$125 per week from $282.85 to $407.85, it would still be only a little more than half the national minimum wage.

The increase would leave JobSeeker recipients at the very bottom of the distribution of earnings of full-time adult workers – the bottom percentile. This means 99 out of every 100 full-time jobs would pay more.

A higher JobSeeker payment of $125 per week could also preserve a significant financial incentive for recipients to take on extra days of paid work.

Under the current income test, the marginal gain from working an extra day at the minimum wage would range from $93 (for the first day) to $34 (third day).

Under a better income test the gain could be smoothed across the week.

The real-life…