Estimation of wage equations for New Zealand
This paper estimates wage equations for New Zealand based on pooled data from the Household Economic Survey (HES) from 2006/07 to 2010/11. Equations are estimated separately for couple men and women, single men and women and sole parents. The results are compared to previous New Zealand estimates using the HES from 1991 to 2001. We estimate wage equations and account for possible sample selection bias. Our estimates of the wage equations are largely comparable to the earlier estimates. We extend the equations to predict wage rates for workers and non-workers by drawing from the estimated wage distribution. We find that sample selection is significant for married men, single women and sole parents but not significant for married women and single men. Overall, we find that wage rates are positively related to age, education and experience but the wage rates are generally lower for non-Europeans and for people living outside Auckland.
|Date of creation:||Apr 2014|
|Date of revision:|
|Contact details of provider:|| Postal: New Zealand Treasury, PO Box 3724, Wellington, New Zealand|
Phone: +64-4-472 2733
Fax: +64-4-473 0982
Web page: http://www.treasury.govt.nz
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Creedy & Alan S. Duncan, 2000. "Wage Functions for Demographic Groups in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 4(4), pages 296-316, December.
- Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053, 1.
- Geoff Lewis & Steven Stillman, 2005.
"Regional Economic Performance in New Zealand: How Does Auckland Compare?,"
Treasury Working Paper Series
05/08, New Zealand Treasury.
- Geoff Lewis & Steven Stillman, 2007. "Regional economic performance in New Zealand: How does Auckland compare?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 41(1), pages 29-68.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Guyonne Kalb & Rosanna Scutella, 2003.
"Wage and Employment Rates in New Zealand from 1991 to 2001,"
Treasury Working Paper Series
03/13, New Zealand Treasury.
- Guyonne Kalb & Rosanna Scutella, 2004. "Wage and employment rates in New Zealand from 1991 to 2001," New Zealand Economic Papers, Taylor & Francis Journals, vol. 38(1), pages 21-47.
- Guyonne Kalb & Rosanna Scutella, 2003. "Wage and Employment Rates in New Zealand from 1991 to 2001," Melbourne Institute Working Paper Series wp2003n13, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Robert Breunig & Joseph Mercante, 2009.
"The accuracy of predicted wages of the non-employed and implications for policy simulations from structural labour supply models,"
Treasury Working Papers
2009-03, The Treasury, Australian Government, revised Mar 2009.
- Robert Breunig & Joseph Mercante, 2010. "The Accuracy of Predicted Wages of the Non-Employed and Implications for Policy Simulations from Structural Labour Supply Models," The Economic Record, The Economic Society of Australia, vol. 86(272), pages 49-70, 03.
- Dean Hyslop & Dave Maré, 2009. "Skill Upgrading in New Zealand, 1986-2001," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 42(4), pages 422-434.
When requesting a correction, please mention this item's handle: RePEc:nzt:nztwps:14/09. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Web and Publishing Team, The Treasury)
If references are entirely missing, you can add them using this form.