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Australia's Unemployment Problem

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  • ANH T. LE
  • PAUL W. MILLER

Abstract

A number of Australian studies have provided microeconomic and macroeconomic perspectives on the causes of, and solutions to, Australia's unemployment problem. This paper provides an evaluation of these studies. Several important findings can be noted. First, from the cross‐sectional studies economists have gained a good understanding of the factors contributing to a high probability of unemployment. Effective use is currently being made of this information. Second, there is general consensus from the time‐series studies regarding the estimates of the aggregate labour demand wage and output elasticities. In addition, it has been widely acknowledged that lower real wages and economic growth would help reduce the high rate of unemployment. Despite the information available we are making slow progress towards reducing the unemployment rate. This may be due to political reasons or because we are unsure of how to deliver the wage cuts and faster rates of economic growth presented as solutions to the unemployment problem.

Suggested Citation

  • Anh T. Le & Paul W. Miller, 2000. "Australia's Unemployment Problem," The Economic Record, The Economic Society of Australia, vol. 76(232), pages 74-104, March.
  • Handle: RePEc:bla:ecorec:v:76:y:2000:i:232:p:74-104
    DOI: 10.1111/j.1475-4932.2000.tb00006.x
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    File URL: https://doi.org/10.1111/j.1475-4932.2000.tb00006.x
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    Cited by:

    1. P. N. Junankar & Satya Paul & Wahida Yasmeen, 2010. "Are Asian Migrants Discriminated Against In The Labor Market? A Case Study Of Australia," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 55(04), pages 619-646.
    2. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2003. "Schooling, Literacy, Numeracy and Labour Market Success," The Economic Record, The Economic Society of Australia, vol. 79(245), pages 165-181, June.
    3. Bårdsen Gunnar & Hurn Stanley & McHugh Zöe, 2012. "Asymmetric Unemployment Rate Dynamics in Australia," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(1), pages 1-22, January.
    4. K.W. Clements, 2000. "Lower Energy Costs and the WA Economy: A general equilibrium analysis," Economics Discussion / Working Papers 00-13, The University of Western Australia, Department of Economics.
    5. Alam, Khorshed & Mamun, Shamsul Arifeen Khan, 2016. "The relationship between labour force status and educational attainment: Evidence from a system of simultaneous equations model," Economic Analysis and Policy, Elsevier, vol. 52(C), pages 55-65.
    6. W D A Bryant, 2009. "General Equilibrium:Theory and Evidence," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 6875.
    7. Paul Oslington, 2012. "General Equilibrium: Theory and Evidence," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 446-448, September.
    8. Jeff Borland, 2000. "Disaggregated Models of Unemployment in Australia," Melbourne Institute Working Paper Series wp2000n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    9. Gunnar Bårdsen & Stan Hurn & Zoë McHugh, 2002. "A smooth-transition model of the Australian unemployment rate," Working Paper Series 1002, Department of Economics, Norwegian University of Science and Technology, revised 01 Jul 2003.

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