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New Zealand Labor Market Dynamics: Pre- and Post-global Financial Crisis

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  • W. A. Razzak

    (New Zealand Treasury)

Abstract

Since 1984, the New Zealand economy has been through major micro–macro and institutional reforms, including the labor market. As reforms began to take effect and expectations adjusted, unemployment in New Zealand declined steadily and persistently since 1993–1994. Many of the earlier adjustments were structural in nature. Along the way, however, changes in unemployment occurred because of transitory shocks. Major increases in unemployment occurred after the 1998 Asian financial crisis and the 2008 Global Financial Crisis (GFC) with similar dynamics. In this paper, we estimate the speed of adjustment in the New Zealand labor market before and after the GFC.

Suggested Citation

  • W. A. Razzak, 2016. "New Zealand Labor Market Dynamics: Pre- and Post-global Financial Crisis," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 12(1), pages 49-79, September.
  • Handle: RePEc:spr:jbuscr:v:12:y:2016:i:1:d:10.1007_s41549-016-0001-6
    DOI: 10.1007/s41549-016-0001-6
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    More about this item

    Keywords

    Natural rate of unemployment; Speed of adjustment of the New Zealand labor market; Estimation;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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