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Decomposing Differences in Labour Force Status between Indigenous and Non-Indigenous Australians

Author

Listed:
  • Kalb, Guyonne

    (Melbourne Institute of Applied Economic and Social Research)

  • Le, Trinh

    (University of Waikato)

  • Hunter, Boyd

    (Australian National University)

  • Leung, Felix

    (University of Sydney)

Abstract

Despite several policy efforts to promote economic participation by Indigenous Australians, they continue to have low participation rates compared to non-Indigenous Australians. This study decomposes the gap in labour market attachment between Indigenous and non- Indigenous Australians in non-remote areas, combining two separate data sources in a novel way to obtain access to richer information than was previously possible. It shows that among women at least two thirds of the gap can be attributed to differences in the observed characteristics between the two populations. For men, the differences in observed characteristics of the two populations can account for 36 to 47 percent of the gap. A detailed decomposition shows that lower education, worse health, and larger families (particularly for women) explain the lower labour market attachment of Indigenous Australians to a substantial extent. Compared with previous studies, this study is able to explain a larger proportion of the gap in employment between Indigenous and non-Indigenous people due to being able to include a larger set of explanatory variables.

Suggested Citation

  • Kalb, Guyonne & Le, Trinh & Hunter, Boyd & Leung, Felix, 2012. "Decomposing Differences in Labour Force Status between Indigenous and Non-Indigenous Australians," IZA Discussion Papers 6808, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp6808
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    References listed on IDEAS

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    Cited by:

    1. Elisa Birch, 2014. "The Determinants of Earnings for Indigenous Australian Workers," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(3), pages 211-232.
    2. Catherine Ris & Samuel Gorohouna, 2013. "Decomposing differences in employment outcomes between Kanak and other New Caledonians - how important is the role of school achievement?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 16(1), pages 115-135.
    3. Vassilis Monastiriotis & Angello Martelli, 2019. "Crisis, adjustment and resilience in the Greek labour market: an unemployment decomposition approach," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 134, Hellenic Observatory, LSE.
    4. Guyonne Kalb & Trinh Le & Boyd Hunter & Felix Leung, 2012. "Decomposing Differences in Labour Force Status between Indigenous and Non-Indigenous Australians," Melbourne Institute Working Paper Series wp2012n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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    More about this item

    Keywords

    labour market attachment; Indigenous Australians; non-linear decomposition;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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