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From Golden Age to Golden Age: Australia's ‘Great Leap Forward’?

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  • PAUL FRIJTERS
  • ROBERT GREGORY

Abstract

The 25 years after World War II witnessed strong labour market institutions and beneficial labour market outcomes – high wage growth and integration of low‐skilled immigrants. Then came the macro shocks of the mid‐1970s. Labour market outcomes deteriorated as full‐time employment–population ratios fell, particularly among men; unemployment and welfare use increased; and real wages grew slowly. The golden age passed. In response, successive governments have increasingly begun to dismantle the institutional framework. We address this transition within a simple long‐run graphical framework to help us marshal facts and arguments and to discuss the likely impact of institutional reform.

Suggested Citation

  • Paul Frijters & Robert Gregory, 2006. "From Golden Age to Golden Age: Australia's ‘Great Leap Forward’?," The Economic Record, The Economic Society of Australia, vol. 82(257), pages 207-224, June.
    • Handle: RePEc:bla:ecorec:v:82:y:2006:i:257:p:207-224
    DOI: 10.1111/j.1475-4932.2006.00316.x
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    Cited by:

    1. Jeff Borland, 2005. "Impacts of Employment Regulation: Towards an Evaluation Framework," Occasional Papers 06/7, Ministry of Economic Development, New Zealand.
    2. Paul Frijters & David Johnston & Michael Shields, 2012. "The Optimality of Tax Transfers: What does Life Satisfaction Data Tell Us?," Journal of Happiness Studies, Springer, vol. 13(5), pages 821-832, October.
    3. Robert G Gregory, 2012. "Living standards, terms of trade and foreign ownership: reflections on the Australian mining boom," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(2), pages 171-200, April.
    4. Herault, Nicolas & Vu, Ha & Wilkins, Roger, 2020. "The Effect of Job Search Requirements on Welfare Receipt," IZA Discussion Papers 13684, Institute of Labor Economics (IZA).
    5. Productivity Commission, 2007. "Potential Benefits of the National Reform Agenda," Research Papers 0701, Productivity Commission, Government of Australia.
    6. Robert G. Gregory, 2013. "The Henderson Question? The Melbourne Institute and 50 Years of Welfare Policy," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(2), pages 202-215, June.

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    More about this item

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • D6 - Microeconomics - - Welfare Economics
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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