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Wage and Employment Rates in New Zealand from 1991 to 2001

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  • 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)

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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Bibliographic Info

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
Date of revision:
Handle: RePEc:iae:iaewps:wp2003n13

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  1. Greene, William H, 1981. "Sample Selection Bias as a Specification Error: Comment," Econometrica, Econometric Society, Econometric Society, vol. 49(3), pages 795-98, May.
  2. 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, Victoria University, Centre of Policy Studies/IMPACT Centre.
  3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  4. Maloney, Tim, 2000. "The impact of welfare reform on labour supply behaviour in New Zealand," Labour Economics, Elsevier, Elsevier, vol. 7(4), pages 427-448, July.
  5. Maloney, Tim, 2002. "Welfare Reform and Unemployment in New Zealand," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 69(274), pages 273-93, May.
  6. 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.
  7. John Ermisch & Robert Wright, 1994. "Interpretation of negative sample selection effects in wage offer equations," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 1(11), pages 187-189.
  8. 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.
  9. Guyonne Kalb & Rosanna Scutella & Hsein Kew, 2002. "Estimation of Wage Equations in Australia: Allowing for Censored Observations of Labour Supply," Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne wp2002n26, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  10. Miller, Paul & Rummery, Sarah, 1991. "Male-Female Wage Differentials in Australia: A Reassessment," Australian Economic Papers, Wiley Blackwell, Wiley Blackwell, vol. 30(56), pages 50-69, June.
  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, The University of Melbourne 761, The University of Melbourne.
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Cited by:
  1. Bargain, Olivier, 2005. "On Modeling Household Labor Supply with Taxation," IZA Discussion Papers 1455, Institute for the Study of Labor (IZA).
  2. Joseph Mercante & Penny Mok, 2014. "Estimation of wage equations for New Zealand," Treasury Working Paper Series 14/09, New Zealand Treasury.

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