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The Long-Run Impact of New Zealand's Structural Reform on Local Communities

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Author Info
Steven Stillman () (Motu Economic and Public Policy Research)
Malathi Velamuri () (Victoria University of Wellington)

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Abstract

New Zealand underwent a period of comprehensive market-oriented economic reforms from 1984-93. In this paper, we use data from the 1986, 1991, 1996 and 2001 Censuses to examine the long-run impact that these reforms had on local communities. We analyse the adjustment process in 140 local labour market areas (LMAs) by creating three measures of the impact of structural reform on local communities - an employment-based measure, a population measure and a housing price measure - and examine the persistence of these shocks over time. We find that communities which experienced smaller employment shocks have higher employment rates, higher average incomes and a more skilled workforce in the medium and long-term. Population shocks also have positive, sizeable and persistent effect on average incomes and population in the future. Overall, the initial impacts of the reforms undertaken in New Zealand on local communities appear to still endure more than a decade later.

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Publisher Info
Paper provided by Motu Economic and Public Policy Research in its series Working Papers with number 08_11.

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Length: 40 pages
Date of creation: Jun 2008
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Handle: RePEc:mtu:wpaper:08_11

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Web page: http://www.motu.org.nz
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Related research
Keywords: Structural Reform; New Zealand; Communities; Local Labour Markets;

Find related papers by JEL classification:
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Easton, Brian, 1994. "Economic and Other Ideas behind the New Zealand Reforms," Oxford Review of Economic Policy, Oxford University Press, vol. 10(3), pages 78-94, Autumn.
  2. Gibson,J.K. & Harris,R.I.D., 1996. "Trade Liberalisation and Plant Exit in New Zealand Manufacturing," Papers 66, Portsmouth University - Department of Economics.
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  3. 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)
  4. Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S111-43, June. [Downloadable!] (restricted)
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This page was last updated on 2009-11-26.


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