An Assessment of Subsidized Relocation of Worker Policy in Britain: A Comment

Abstract

IN A recent article in this Journal ¹ Mr P. B. Beaumont refers to the newly insti tuted Relocation Assistance Program in Australia and provides some evidence from the British experience (known as the Employment Transfer Scheme) which conveys rather negative feelings as to the effectiveness of this method of attacking the problem of poverty in a country. We argue in this comment (1) that Beaumont employs an improper measure of program effectiveness, (2) that he has conceded arguments supporting substantial external social costs associ ated with relocation programs which are theoretically very weak, and (3) that he has concentrated excessively on the use of relocatee return rates which pro duces improper assessment of relocation programs and weak policy prescriptions.