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

  • Frijters, Paul

    ()

    (University of Queensland)

  • Gregory, Bob

    ()

    (Australian National University)

The twenty-five years after WW 2 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 males; 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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2068.

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Length: 46 pages
Date of creation: Apr 2006
Date of revision:
Handle: RePEc:iza:izadps:dp2068
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