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Apparent Asymmetries in the Relationship Between the Participation Rate and the Employment Rate in Australia

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  • Dixon, R.

Abstract

A large number of empirical studies exist now for Australia reporting evidence consistent with the endogeneity of the participation rate. None of these models examine the possibility that the elasticity of the workforce with respect to employment might vary systematically over the business cycle. For the aggregate data set examined in this paper, it appears to be the case that the discouraged worker effect is smaller than the encouraged worker effect, indeed, the former appears to be approximately one-half the size of the latter effect.

Suggested Citation

  • Dixon, R., 1996. "Apparent Asymmetries in the Relationship Between the Participation Rate and the Employment Rate in Australia," Department of Economics - Working Papers Series 522, The University of Melbourne.
  • Handle: RePEc:mlb:wpaper:522
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    References listed on IDEAS

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    Cited by:

    1. Jeff Borland, 2002. "Comments on ‘The Five Economists’ Plan: the original idea and further developments’," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, pages 239-242.
    2. Guy Debelle & James Vickery, 1998. "The Macroeconomics of Australian Unemployment," RBA Annual Conference Volume,in: Guy Debelle & Jeff Borland (ed.), Unemployment and the Australian Labour Market Reserve Bank of Australia.
    3. John Freebairn, 1998. "Microeconomics of the Australian Labour Market," RBA Annual Conference Volume,in: Guy Debelle & Jeff Borland (ed.), Unemployment and the Australian Labour Market Reserve Bank of Australia.
    4. Robert Dixon & John Freebairn & G C Lim, 2004. "An Employment Equation For Australia: 1966-2001," Department of Economics - Working Papers Series 892, The University of Melbourne.

    More about this item

    Keywords

    EMPLOYMENT; UNEMPLOYMENT; AUSTRALIA; MANPOWER; LABOUR MARKET;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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