The Dynamics of Participation in the Sole Parent Pension

The length of time families spent on the Sole Parent Pension (SPP) is analysed using the FaCS Longitudinal Data Set covering the period from June 1995 to June 1999. It is found that lone mothers, relatively younger and older lone parents, and those with younger children had lower exit rates from SPP. There is significant regional variation in the SPP exit rate, and there is evidence this is related to the implicit subsidy of public housing. Lone parents with greater job attachment had substantially shorter stays on SPP. Program payment levels had a relatively small effect on the length of time on SPP