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Rethinking the Welfare State: The prospects for ... - e-Library

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Labour market training 209<br />

reflect both (1) levels of client disadvantage and (2) successful outcome. While riskadjusting<br />

adds complexity and increases costs, it also provides a strong incentive to avoid<br />

cream-skimming and may, given <strong>the</strong> Australian experience, be justified.<br />

We anticipate that <strong>the</strong>se re<strong>for</strong>ms will increase <strong>the</strong> effectiveness of active measures<br />

directed at <strong>the</strong> unemployed as well as increase <strong>the</strong> efficiency with which such programs<br />

are delivered. Under a voucher system, society can more fully realize both <strong>the</strong> private and<br />

social returns of labour market training.

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