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Wage and employment rates in New Zealand from 1991 to 2001

  • Guyonne Kalb
  • Rosanna Scutella

This paper examines the simultaneous determinants of employment and wage rates for people of working age in New Zealand. The determinants are as anticipated and similar to results in other countries. In addition to the effects of the usual variables (such as, education, age, family composition), it is found that unemployment affects the probability of employment negatively, but has no effect on wage rates, living with one's parents decreases the employment probability of singles but increases it for sole parents, and the change in the age of eligibility for the New Zealand Superannuation affects the employment decision, indicating that individuals reacted to incentives to participate at an older age.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00779950409544392
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Article provided by Taylor & Francis Journals in its journal New Zealand Economic Papers.

Volume (Year): 38 (2004)
Issue (Month): 1 ()
Pages: 21-47

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Handle: RePEc:taf:nzecpp:v:38:y:2004:i:1:p:21-47
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  1. Miller, Paul & Rummery, Sarah, 1991. "Male-Female Wage Differentials in Australia: A Reassessment," Australian Economic Papers, Wiley Blackwell, vol. 30(56), pages 50-69, June.
  2. Guyonne Kalb & Rosanna Scutella, 2002. "Estimation of Wage Equations in Australia: Allowing for Censored Observations of Labour Supply," Melbourne Institute Working Paper Series wp2002n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  4. David C Mare & Peter Mawson & Jason Timmins, 2001. "Deprivation in New Zealand: Regional Patterns and Changes," Treasury Working Paper Series 01/09, New Zealand Treasury.
  5. Greene, William H, 1981. "Sample Selection Bias as a Specification Error: Comment," Econometrica, Econometric Society, vol. 49(3), pages 795-98, May.
  6. Creedy, J. & Duncan, A.S. & Harris, M.N. & Scutella, R., 2000. "Wage Function: Australian Estimates Using the Income Distribution Survey," Department of Economics - Working Papers Series 761, The University of Melbourne.
  7. Maloney, Tim, 2002. "Welfare Reform and Unemployment in New Zealand," Economica, London School of Economics and Political Science, vol. 69(274), pages 273-93, May.
  8. Maloney, Tim, 2000. "The impact of welfare reform on labour supply behaviour in New Zealand," Labour Economics, Elsevier, vol. 7(4), pages 427-448, July.
  9. John Ermisch & Robert Wright, 1994. "Interpretation of negative sample selection effects in wage offer equations," Applied Economics Letters, Taylor & Francis Journals, vol. 1(11), pages 187-189.
  10. John K Gibson & Grant M Scobie, 2001. "Household Saving Behaviour in New Zealand: A Cohort Analysis," Treasury Working Paper Series 01/18, New Zealand Treasury.
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