IDEAS home Printed from https://ideas.repec.org/a/ozl/journl/v11y2008i1p71-96.html
   My bibliography  Save this article

Low Paid Jobs and Unemployment: Churning in the Australian Labour Market, 2001 to 2006

Author

Listed:
  • Ian Watson

    (Macquarie University)

Abstract

This article explores the links between low pay, unemployment and labour market churning over the period 2001 to 2006. The issue of churning is explored through analysis of the HILDA calendar data, in which job starts and job terminations are modelled using multinomial logit regressions. The results are further explored using multilevel binomial logit models. Predicted probabilities of moving from job to job, from unemployment into jobs, and from jobs into unemployment, are calculated and these show that low paid, low skilled workers are highly vulnerable to labour market churning. Certain demographic groups, particularly migrants from particular regions, are also shown to be vulnerable. The results reinforce the importance of labour market policies which prioritise job continuity, skills development and earnings improvement rather than simply focusing on job attainment.

Suggested Citation

  • Ian Watson, 2008. "Low Paid Jobs and Unemployment: Churning in the Australian Labour Market, 2001 to 2006," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(1), pages 71-96.
    • Handle: RePEc:ozl:journl:v:11:y:2008:i:1:p:71-96
    as

    Download full text from publisher

    File URL: http://ftprepec.drivehq.com/ozl/journl/downloads/AJLE111watson.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tony Eardley, 1998. "Working But Poor? Low Pay and Poverty in Australia," Discussion Papers 0091, University of New South Wales, Social Policy Research Centre.
    2. Nick Carroll, 2006. "Explaining Unemployment Duration in Australia," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 298-314, September.
    3. Daniel Perkins & Rosanna Scuttella, 2008. "Improving Employment Retention and Advancement of Low-Paid Workers," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(1), pages 97-114.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hielke Buddelmeyer & Wang‐Sheng Lee & Mark Wooden, 2010. "Low‐Paid Employment and Unemployment Dynamics in Australia," The Economic Record, The Economic Society of Australia, vol. 86(272), pages 28-48, March.
    2. Lixin Cai, 2015. "The dynamics of low pay employment in Australia," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(7), pages 1095-1123, October.
    3. Cristian Ionel Rotaru, 2014. "Transitioning Out of Unemployment: Analysis Using the ABS Longitudinal Labour Force Survey File," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(2), pages 111-137.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Deborah A. Cobb‐Clark & Lihini De Silva, 2021. "Participation, Unemployment, and Wages," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 482-493, December.
    2. Aysit Tansel & H. Mehmet Taşçı, 2010. "Hazard Analysis of Unemployment Duration by Gender in a Developing Country: The Case of Turkey," LABOUR, CEIS, vol. 24(4), pages 501-530, December.
    3. Deborah A. Cobb-Clark & Andrew Leigh, 2009. "Long-Term Unemployment in the ACT," CEPR Discussion Papers 603, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    4. Lixin Cai, 2014. "State-Dependence and Stepping-Stone Effects of Low-Pay Employment in Australia," The Economic Record, The Economic Society of Australia, vol. 90(291), pages 486-506, December.
    5. Thorsten Stromback, 2012. "The employment effect of intensive support," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(1), pages 57-76.
    6. Vikman, Ulrika, 2010. "Does Providing Childcare to Unemployed Affect Unemployment Duration?," Working Paper Series 2010:9, Uppsala University, Department of Economics.
    7. Gary Marks, 2005. "Dynamics of Financial Disadvantage," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 12(4), pages 309-322.
    8. Lixin Cai, 2015. "The dynamics of low pay employment in Australia," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(7), pages 1095-1123, October.
    9. Jeff Borland, 1999. "Earnings Inequality in Australia: Changes, Causes and Consequences," The Economic Record, The Economic Society of Australia, vol. 75(2), pages 177-202, June.
    10. Vespignani, Joaquin & Yanotti, Maria, 2020. "COVID-19 and Tasmanian youth unemployment: a policy recommendation," Working Papers 2020-07, University of Tasmania, Tasmanian School of Business and Economics.
    11. Hielke Buddelmeyer & Wang‐Sheng Lee & Mark Wooden, 2010. "Low‐Paid Employment and Unemployment Dynamics in Australia," The Economic Record, The Economic Society of Australia, vol. 86(272), pages 28-48, March.
    12. Mark Wooden & Nicole Watson, 2007. "The HILDA Survey and its Contribution to Economic and Social Research (So Far)," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 208-231, June.
    13. Jeff Borland & David Johnston, 2010. "How Does a Worker's Labour Market History Affect Job Duration?," Melbourne Institute Working Paper Series wp2010n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    14. Darja Boršič & Alenka Kavkler, 2009. "Modeling Unemployment Duration in Slovenia using Cox Regression Models," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(1), pages 145-156, May.
    15. Anton Samoilenko & Kristie Carter, 2015. "Economic Outcomes of Youth not in Education, Employment or Training (NEET)," Treasury Working Paper Series 15/01, New Zealand Treasury.
    16. Hock-Eam Lim Author_Email: lheam@uum.edu.my, 2011. "The Determinants Of Individual Unemployment Duration: The Case Of Malaysian Graduates," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-510, Conference Master Resources.
    17. Cristian Ionel Rotaru, 2014. "Transitioning Out of Unemployment: Analysis Using the ABS Longitudinal Labour Force Survey File," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(2), pages 111-137.
    18. Matthew Forbes & Andrew Barker, 2017. "Local Labour Markets and Unemployment Duration," The Economic Record, The Economic Society of Australia, vol. 93(301), pages 238-254, June.
    19. Hock-Eam Lim, 2011. "The Determinants Of Individual Unemployment Duration: The Case Of Malaysian Graduates," Journal of Global Management, Global Research Agency, vol. 2(2), pages 184-203, July.
    20. Jennifer Baxter & Jennifer Renda, 2011. "Lone and couple mothers in the Australian labour market: differences in employment transitions," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 14(2), pages 103-122.

    More about this item

    Keywords

    Labor Economics; General Wages; Compensation; and Labor Costs; General Mobility; Unemployment; and Vacancies;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ozl:journl:v:11:y:2008:i:1:p:71-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sandie Rawnsley (email available below). General contact details of provider: https://edirc.repec.org/data/becurau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.