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

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Author Info

  • Frijters, Paul

    ()
    (University of Queensland)

  • Gregory, Bob

    ()
    (Australian National University)

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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Bibliographic 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
Date of revision:
Handle: RePEc:iza:izadps:dp2068

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Keywords: institutional reform; welfare use; wage growth; unemployment; Australia;

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References

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  1. Gerfin, Michael & Lechner, Michael & Steiger, Heidi, 2002. "Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A2-2, International Conferences on Panel Data.
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  7. Paul Frijters, 1997. "Capital scarcities as a reason for high unemployment in the European Union," Macroeconomics 9706002, EconWPA.
  8. Andrew Leigh, 2007. "Does Raising the Minimum Wage Help the Poor?," The Economic Record, The Economic Society of Australia, vol. 83(263), pages 432-445, December.
  9. 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.
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  15. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Trends in U.S. Wage Inequality: Re-Assessing the Revisionists," NBER Working Papers 11627, National Bureau of Economic Research, Inc.
  16. Lixin Cai, 2004. "An Analysis of Durations on the Disability Support Pension (DSP) Program," Melbourne Institute Working Paper Series wp2004n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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  21. Lisa Farrell & Paul Frijters, 2008. "Choosing to become a 'lost cause': the perverse effects of benefit preconditions," Oxford Economic Papers, Oxford University Press, vol. 60(1), pages 1-19, January.
  22. R. G. Gregory & R. C. Duncan, 1981. "Segmented Labor Market Theories and the Australian Experience of Equal Pay for Women," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 3(3), pages 403-428, April.
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Citations

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Cited by:
  1. Paul Frijters & David Johnston & Michael Shields, 2012. "The Optimality of Tax Transfers: What does Life Satisfaction Data Tell Us?," Journal of Happiness Studies, Springer, vol. 13(5), pages 821-832, October.
  2. Productivity Commission, 2007. "Potential Benefits of the National Reform Agenda," Research Papers 0701, Productivity Commission, Government of Australia.
  3. Borland, Jeff, 2005. "Impacts of Employment Regulation: Towards an Evaluation Framework," Occasional Papers 06/7, Ministry of Economic Development, New Zealand.

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