Decomposing Differences in Labour Force Status between Indigenous and Non-Indigenous Australians
AbstractDespite several policy efforts to promote economic participation by Indigenous Australians, they continue to have low participation rates compared to non-Indigenous Australians. This study decomposes the gap in labour market attachment between Indigenous and non- Indigenous Australians in non-remote areas, combining two separate data sources in a novel way to obtain access to richer information than was previously possible. It shows that among women at least two thirds of the gap can be attributed to differences in the observed characteristics between the two populations. For men, the differences in observed characteristics of the two populations can account for 36 to 47 percent of the gap. A detailed decomposition shows that lower education, worse health, and larger families (particularly for women) explain the lower labour market attachment of Indigenous Australians to a substantial extent. Compared with previous studies, this study is able to explain a larger proportion of the gap in employment between Indigenous and non-Indigenous people due to being able to include a larger set of explanatory variables.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6808.
Length: 34 pages
Date of creation: Aug 2012
Date of revision:
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Other versions of this item:
- Guyonne Kalb & Trinh Le & Boyd Hunter & Felix Leung, 2012. "Decomposing Differences in Labour Force Status between Indigenous and Non-Indigenous Australians," Melbourne Institute Working Paper Series wp2012n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-30 (All new papers)
- NEP-DEM-2012-09-30 (Demographic Economics)
- NEP-LAB-2012-09-30 (Labour Economics)
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