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Low Paid Jobs and Unemployment: Churning in the Australian Labour Market, 2001 to 2006

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  • Ian Watson

    (Macquarie University)

Abstract

This article explores the links between low pay, unemployment and labour market churning over the period 2001 to 2006. The issue of churning is explored through analysis of the HILDA calendar data, in which job starts and job terminations are modelled using multinomial logit regressions. The results are further explored using multilevel binomial logit models. Predicted probabilities of moving from job to job, from unemployment into jobs, and from jobs into unemployment, are calculated and these show that low paid, low skilled workers are highly vulnerable to labour market churning. Certain demographic groups, particularly migrants from particular regions, are also shown to be vulnerable. The results reinforce the importance of labour market policies which prioritise job continuity, skills development and earnings improvement rather than simply focusing on job attainment.

Suggested Citation

  • Ian Watson, 2008. "Low Paid Jobs and Unemployment: Churning in the Australian Labour Market, 2001 to 2006," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(1), pages 71-96.
    • Handle: RePEc:ozl:journl:v:11:y:2008:i:1:p:71-96
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    References listed on IDEAS

    as
    1. Nick Carroll, 2006. "Explaining Unemployment Duration in Australia," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 298-314, September.
    2. Daniel Perkins & Rosanna Scuttella, 2008. "Improving Employment Retention and Advancement of Low-Paid Workers," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(1), pages 97-114.
    3. Tony Eardley, 1998. "Working But Poor? Low Pay and Poverty in Australia," Discussion Papers 0091, University of New South Wales, Social Policy Research Centre.
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    Cited by:

    1. Hielke Buddelmeyer & Wang‐Sheng Lee & Mark Wooden, 2010. "Low‐Paid Employment and Unemployment Dynamics in Australia," The Economic Record, The Economic Society of Australia, vol. 86(272), pages 28-48, March.
    2. Lixin Cai, 2015. "The dynamics of low pay employment in Australia," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(7), pages 1095-1123, October.
    3. Cristian Ionel Rotaru, 2014. "Transitioning Out of Unemployment: Analysis Using the ABS Longitudinal Labour Force Survey File," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(2), pages 111-137.

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    More about this item

    Keywords

    Labor Economics; General Wages; Compensation; and Labor Costs; General Mobility; Unemployment; and Vacancies;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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