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|
|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
References listed on IDEAS
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.:
- 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," Treasury Working Paper Series 03/13, New Zealand Treasury.
- 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.
- 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.
- Geoff Lewis & Steven Stillman, 2005. "Regional Economic Performance in New Zealand: How Does Auckland Compare?," Treasury Working Paper Series 05/08, New Zealand Treasury.
- Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053, September.
- 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.
- 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.
- Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-161, January.
- 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.
- 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. Full references (including those not matched with items on IDEAS)