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From Golden Age to Golden Age: Australia’s "Great Leap Forward"?

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Author Info
Paul Frijters () (Queensland University of Technology)
Robert Gregory () (RSSS, Australian National University and IZA Bonn)

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Abstract

The twenty-five years after WW 2 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 males; 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.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2068.

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Length: 46 pages
Date of creation: Apr 2006
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Handle: RePEc:iza:izadps:dp2068

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Related research
Keywords: unemployment wage growth welfare use institutional reform Australia

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Find related papers by JEL classification:
J0 - Labor and Demographic Economics - - General
D6 - Microeconomics - - Welfare Economics
E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
L5 - Industrial Organization - - Regulation and Industrial Policy
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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References listed on IDEAS
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