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Wage and Employment Rates in New Zealand from 1991 to 2001

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Author Info
Guyonne Kalb () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
Rosanna Scutella () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

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Abstract

This paper presents results for five separately estimated sets of employment and wage equations. The New Zealand working-age population is divided into sole parents, single men, single women, married men and married women. The results for the wage equations are as anticipated and similar to the results in other countries. A higher education level, living in a city and age (up to the early forties) increase the expected wage. Wages also differ significantly across industries and occupations. Employment follows the expected patterns as well, where women with children are less likely to be employed; education increases the employment probability; and living in remote areas decreases employment. In addition to the usual variables, unemployment affects the probability of employment negatively and a clear upward time trend is observed for sole parents, living with one's parents decreases the employment probability of singles but increases the probability for sole parents, and the change in the age of eligibility for the New Zealand Superannuation seems to affect the employment decision.

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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2003n13.

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Length: 36 pages
Date of creation: May 2003
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Handle: RePEc:iae:iaewps:wp2003n13

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  1. Ermisch, John F & Wright, Robert E, 1994. "Interpretation of Negative Sample Selection Effects in Wage Offer Equations," Applied Economics Letters, Taylor and Francis Journals, vol. 1(11), pages 187-89, November. [Downloadable!] (restricted)
  2. David C Mare & Peter Mawson & Jason Timmins, 2001. "Deprivation in New Zealand: Regional Patterns and Changes," Treasury Working Paper Series 01/09, New Zealand Treasury. [Downloadable!]
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  4. Guyonne Kalb & Rosanna Scutella, 2002. "Estimation of Wage Equations in Australia: Allowing for Censored Observations of Labour Supply," Melbourne Institute Working Paper Series wp2002n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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  5. Greene, William H, 1981. "Sample Selection Bias as a Specification Error: Comment," Econometrica, Econometric Society, vol. 49(3), pages 795-98, May. [Downloadable!] (restricted)
  6. John K Gibson & Grant M Scobie, 2001. "Household Saving Behaviour in New Zealand: A Cohort Analysis," Treasury Working Paper Series 01/18, New Zealand Treasury. [Downloadable!]
  7. Maloney, Tim, 2000. "The impact of welfare reform on labour supply behaviour in New Zealand," Labour Economics, Elsevier, vol. 7(4), pages 427-448, July. [Downloadable!] (restricted)
  8. Miller, Paul & Rummery, Sarah, 1991. "Male-Female Wage Differentials in Australia: A Reassessment," Australian Economic Papers, Blackwell Publishing, vol. 30(56), pages 50-69, June.
  9. Guyonne R. Kalb, 2000. "Labour Supply and Welfare Participation in Australian Two-Adult Households: Accounting for Involuntary Unemployment and the 'Cost' of Part-time Work," Centre of Policy Studies/IMPACT Centre Working Papers bp-35, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  10. Maloney, Tim, 2002. "Welfare Reform and Unemployment in New Zealand," Economica, London School of Economics and Political Science, vol. 69(274), pages 273-93, May. [Downloadable!] (restricted)
  11. Creedy, J. & Duncan, A.S. & Harris, M.N. & Scutella, R., 2000. "Wage Function: Australian Estimates Using the Income Distribution Survey," Department of Economics - Working Papers Series 761, The University of Melbourne. [Downloadable!]
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