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New Zealand Labour Market Dynamics: Pre- and Post-global Financial Crisis

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Abstract

A persistent increase in the unemployment rate ignites speculations about whether the changes to unemployment are structural or cyclical. The New Zealand economy has been through major restructuring since the mid-1980s. The labour market’s institutional changes were the last in the sequence of these reforms. As reforms began to take effect and expectations adjusted, unemployment in New Zealand has declined steadily and persistently since 1993-1994. Along the way, however, transitory increases in unemployment occurred. Major increases occurred after the Asian financial crisis and the global financial crisis with similar dynamics.

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  • Weshah Razzak, 2014. "New Zealand Labour Market Dynamics: Pre- and Post-global Financial Crisis," Treasury Working Paper Series 14/03, New Zealand Treasury.
  • Handle: RePEc:nzt:nztwps:14/03
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    File URL: https://treasury.govt.nz/sites/default/files/2014-02/twp14-03.pdf
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    Keywords

    Natural Rate of Unemployment; Speed of adjustment of the New Zealand labour market; estimation;

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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