The Victorian Economy in the1989/90 – 1992/93 Recession
The last major contraction experienced by the Australian economy took place over the period 1989/90 - 1992/93. In that period aggregate employment fell by 7.5% in Victoria but only by 2.9% in New South Wales. This paper aims to do two things. First, to explain why there is such a large difference in the employment experience of the two states in the recession. Second, to demonstrate the use of various shift-share decompositions in an attempt to isolate the contribution of industry-mix c.f. differential growth to the difference in the reduction in employment between the two states
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