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From Golden Age to Golden Age: Australia's 'Great Leap Forward'?

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Author Info
PAUL FRIJTERS
ROBERT GREGORY

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Abstract

The 25 years after World War II witnessed strong labour market institutions and beneficial labour market outcomes - high wage growth and integration of low-skilled immigrants. Then came the macro shocks of the mid-1970s. Labour market outcomes deteriorated as full-time employment-population ratios fell, particularly among men; unemployment and welfare use increased; and real wages grew slowly. The golden age passed. In response, successive governments have increasingly begun to dismantle the institutional framework. We address this transition within a simple long-run graphical framework to help us marshal facts and arguments and to discuss the likely impact of institutional reform. Copyright © 2006 The Economic Society of Australia.

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Article provided by The Economic Society of Australia in its journal Economic Record.

Volume (Year): 82 (2006)
Issue (Month): 257 (06)
Pages: 207-224
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Handle: RePEc:bla:ecorec:v:82:y:2006:i:257:p:207-224

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  18. Saez, Emmanuel, 2001. "Using Elasticities to Derive Optimal Income Tax Rates," Review of Economic Studies, Blackwell Publishing, vol. 68(1), pages 205-29, January.
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