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Wage and Employment Rates in New Zealand from 1991 to 2001

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Author Info
Guyonne Kalb ()
Rosanna Scutella () (The Treasury)

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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 eligibility for the New Zealand Superannuation seems relevant in the employment decision.

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File URL: http://www.treasury.govt.nz/publications/research-policy/wp/2003/03-13/twp03-13.pdf
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Publisher Info
Paper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 03/13.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 37 pages
Date of creation: Mar 2003
Date of revision:
Handle: RePEc:nzt:nztwps:03/13

Contact details of provider:
Postal: New Zealand Treasury, PO Box 3724, Wellington, New Zealand
Phone: +64-4-472 2733
Fax: +64-4-473 0982
Web page: http://www.treasury.govt.nz
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Related research
Keywords: Wage rate employment joint model specification

Other versions of this item:

Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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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. Ermisch, John F & Wright, Robert E, 1994. "Interpretation of Negative Sample Selection Effects in Wage Offer Equations," Applied Economics Letters, Taylor and Francis Journals, vol. 1(11), pages 187-89, November. [Downloadable!] (restricted)
  2. 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. [Downloadable!]
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  4. Guyonne Kalb & Rosanna Scutella, 2002. "Estimation of Wage Equations in Australia: Allowing for Censored Observations of Labour Supply," Melbourne Institute Working Paper Series wp2002n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
    Other versions:
  5. Greene, William H, 1981. "Sample Selection Bias as a Specification Error: Comment," Econometrica, Econometric Society, vol. 49(3), pages 795-98, May. [Downloadable!] (restricted)
  6. 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. [Downloadable!]
  7. Maloney, Tim, 2000. "The impact of welfare reform on labour supply behaviour in New Zealand," Labour Economics, Elsevier, vol. 7(4), pages 427-448, July. [Downloadable!] (restricted)
  8. Miller, Paul & Rummery, Sarah, 1991. "Male-Female Wage Differentials in Australia: A Reassessment," Australian Economic Papers, Blackwell Publishing, vol. 30(56), pages 50-69, June.
  9. 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, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  10. 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)
  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 761, The University of Melbourne. [Downloadable!]
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