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The long-run impact of New Zealand's structural reform on local communities

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  • Stillman, Steven
  • Velamuri, Malathi
  • Aitken, Andrew

Abstract

New Zealand underwent a period of comprehensive market-oriented economic reforms from 1984 to 1993. In this paper, we use data from the 1986, 1991, 1996 and 2001 New Zealand census to examine the long-run impact that these reforms had on local communities. We analyse the adjustment process in 140 local labour market areas by creating three measures of the impact of structural reform on local communities and examining the persistence of these shocks over time. We find that communities which experienced smaller employment shocks have higher employment rates and a more skilled workforce in the medium and long-term. Population shocks also have positive, sizeable and persistent effect on future population size. Overall, the initial impacts of the reforms undertaken in New Zealand on local communities appear to still endure more than a decade later.

Suggested Citation

  • Stillman, Steven & Velamuri, Malathi & Aitken, Andrew, 2010. "The long-run impact of New Zealand's structural reform on local communities," Journal of Comparative Economics, Elsevier, vol. 38(4), pages 432-448, December.
  • Handle: RePEc:eee:jcecon:v:38:y:2010:i:4:p:432-448
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    References listed on IDEAS

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    Cited by:

    1. Isabelle Sin & Steven Stillman, 2016. "Economic liberalisation and the mobility of minority groups: evidence from Māori in New Zealand," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-18, December.
    2. Gani, Azmat & Scrimgeour, Frank, 2016. "New Zealand's trade with Asia and the role of good governance," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 36-53.

    More about this item

    Keywords

    Structural reform New Zealand Communities Local labour markets;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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