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Ethnicity and Job Tenure in a Segmented Labour Market: The Case for New Zealand

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  • Henry W. Herzog, Jr

Abstract

The labour market experience of 1984–1992 turned on end the prevailing notion of ‘personal security’ within New Zealand, founded as it was upon guaranteed employment (and full‐employment in the aggregate). This study examines, in a systematic fashion and within a dynamic setting, why job tenure varied consistently over this period between two ethnic groups, the first comprised of European/Pakeha workers, and the second New Zealand Maori and Pacific Islanders. Econometric analyses of total, voluntary and involuntary separations indicate that the low relative job security of Maori/Pacific Islanders cannot be attributed solely to differential attributes that, on the one hand represent such individuals’ gender/age distribution, qualifications, and conditions of employment, and on the other provide controls for the relative competitive positions of their employers. Rather, other factors, such as worker segmentation, are likely operative within the New Zealand labour market, conditions that, on net, work to the disadvantage of non‐Europeans.

Suggested Citation

  • Henry W. Herzog, Jr, 1997. "Ethnicity and Job Tenure in a Segmented Labour Market: The Case for New Zealand," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 30(2), pages 167-184, June.
    • Handle: RePEc:bla:ausecr:v:30:y:1997:i:2:p:167-184
    DOI: 10.1111/1467-8462.00015
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    Cited by:

    1. Morrison, Philip S. & Papps, Kerry L. & Poot, Jacques, 2006. "Wages, employment, labour turnover and the accessibility of local labour markets," Labour Economics, Elsevier, vol. 13(5), pages 639-663, October.
    2. Henry W. Herzog, 2000. "Employment Uncertainty and the Incidence of Job Loss in Transition Economies: The Case for Central Europe," Southern Economic Journal, John Wiley & Sons, vol. 66(3), pages 567-589, January.
    3. Sholeh A Maani, 2002. "Education and Maori Relative Income Levels over Time: The Mediating Effect of Occupation, Industry, Hours of Work and Locality," Treasury Working Paper Series 02/17, New Zealand Treasury.

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