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Long-Term Unemployment in the ACT

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  • Deborah A. Cobb-Clark
  • Andrew Leigh

Abstract

In the late 1970s and early 1980s, the overall unemployment rate in the ACT was virtually indistinguishable from that in the country as a whole. However, for the past twenty-five years, unemployment in the ACT has been lower – often substantially lower – than in the nation as a whole. The ACT also has a lower rate of long-term unemployment (defined as unemployment durations of 12 months or more). Given the unique nature of the ACT labour market, it is useful to focus on long-term unemployment in the ACT specifically. We do this by analysing administrative data on benefits payments. Looking only at unemployed persons in the ACT, and analysing the propensity to be long-term unemployed, we find that men, Indigenous people, older people, and less educated people are more likely to be long-term unemployed. Finally we find that unemployment and long-term unemployment in the ACT is geographically concentrated in certain neighbourhoods.

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Bibliographic Info

Paper provided by Centre for Economic Policy Research, Research School of Economics, Australian National University in its series CEPR Discussion Papers with number 603.

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Date of creation: Mar 2009
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Handle: RePEc:auu:dpaper:603

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Keywords: unemployment duration; local labour markets;

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  1. Junankar, P.N. & Kapuscinski, C.A., 1991. "The Incidence of Long Term Unemployment in Australia," CEPR Discussion Papers 249, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  2. A.M. Dockery & Elizabeth Webster, 2002. "Long-Term Unemployment and Work Deprived individuals: issues and Policies," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 5(2), pages 175-193, June.
  3. Nick Carroll, 2006. "Explaining Unemployment Duration in Australia," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 298-314, 09.
  4. Michael Rosholm, 2001. "Cyclical variations in unemployment duration," Journal of Population Economics, Springer, vol. 14(1), pages 173-191.
  5. Christian Belzil, 2001. "Unemployment insurance and subsequent job duration: job matching versus unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(5), pages 619-636.
  6. Nicole Watson & Mark Wooden, 2004. "Sample Attrition in the HILDA Survey," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(2), pages 293-308, June.
  7. Dolton, Peter & O'Neill, Donal, 1995. "The Impact of Restart on Reservation Wages and Long-Term Unemployment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(4), pages 451-70, November.
  8. Bruce D. Meyer, 1995. "Lessons from the U.S. Unemployment Insurance Experiments," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 91-131, March.
  9. John T. Addison & Pedro Portugal, 2003. "Unemployment Duration Competing and Defective Risks," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
  10. Mark Wooden & Simon Freidin & Nicole Watson, 2002. "The Household, Income and Labour Dynamics in Australia (HILDA)Survey: Wave 1," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 339-348.
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