The Phillips Curve in Australia

In this article it is shown that individual-based measures of joblessness and household measures of joblessness have diverged over the last twenty years with joblessness becoming increasingly concentrated in certain households.

The Growth of Jobless Households in Australia

Access to and use of the Internet and other telecommunications services are rapidly becoming an increasingly common and critical part of commerce, education and social participation. Groups with little opportunity to participate in the services provided by new telecommunications technology will be increasingly disadvantaged socially and economically. The concept of a ‘digital divide’ is being used to describe disparities in the use of the Internet and new telecommunications services across different social groups. In Australia the debate has taken a regional focus because of differences in metropolitan and regional rates of access. Government policies have focused on supply-side issues such as the quality and cost of supply in regional Australia. However, evidence from overseas studies suggests that sociodemographic factors may also influence access to new technology. This study explores the social and economic characteristics of Australians with different levels of access to and use of communications services. The results show that a large proportion of Australians do not participate in the knowledge economy — not because of where they live, but because of their economic and social circumstances. The most important driver of Internet access is educational qualification, followed by income. After accounting for other factors, region and State of residence by themselves do not explain differences in Internet take-up rates. This result suggests that supply-side policy solutions will not be sufficient to overcome the digital divide.

/pdf/barriers-to-the-take-up-of-new-technology-55ty3d481r.pdf

Barriers to the take-up of new technology

In this paper we examine the nature of disparities in regional (state) unemployment rates in Australia over the period 1978-99 and their relationship to the national unemployment rate. Using co-integration analysis, we find that there is a negative relationship between the two implying that, as the national unemployment rate falls, micro and/or differentiated labour market policies need to bite harder (and affect proportionately more people) if equity in unemployment across regions is to be maintained. We also find that the trade-off between dispersion and unemployment has become steeper in the period following significant deregulation of the Australian economy in the early 1980s. It would appear likely that this reflects an increase in differences in the natural rate of unemployment between the regions since that time. Cet article cherche a examiner l'essentiel des ecarts entre les taux de chomage regional en Australie (a savoir au niveau des etats) de 1978 a 1999 et son rapport au taux de chomage moyen....

Regional Unemployment Disparities in Australia

This paper reviews evidence about the incidence and impact of unemployment on the family. It finds that while the unemployment rate faced by husbands and wives is relatively low, many unemployed pe...

Effects of Unemployment on the Family

terms, too high a level of aggregate wages reflects an imbalance of labour market power between active participants in the labour market (insiders), and those with a less effective presence (outsiders). Such an imbalance can diminish the benefits of productivity-enhancing reforms if the increase in productivity is captured predominantly by those already employed, in the form of higher wages, rather than being more evenly distributed across the whole population, in the form of increased employment. One means of increasing the bargaining power of outsiders is to use active labour market programs. Drawing on the large variety of programs that have been adopted in OECD countries, the paper by Martin presents a checklist of those labour market programs that appear to work and those that do not. The general aim of such programs is to increase the ability of the unemployed to compete effectively in the labour market by increasing ‘job readiness’ in terms of basic work skills and by assisting the unemployed in locating employment opportunities through the provision of information, or the provision of wage subsidies which increase their attractiveness to potential employers. Labour market programs which target potentially disadvantaged groups at an early age, while initially expensive, can avoid greater costs in the future. A particularly effective type of labour market program is one that provides opportunities for the workforce to increase their education and skill levels. However, care must be taken to avoid the pitfall of encouraging individuals to remain in certain forms of education which, while temporarily reducing the measured unemployment rate, do not provide them with the necessary training to increase their future employability. Education, like all other forms of labour market programs, needs to be carefully targeted. Furthermore, labour market institutions should be structured to allow the unemployed with increased skills and education to compete effectively with the insiders. A necessary element in any solution to unemployment is entrepreneurship. Without a sufficient pool of entrepreneurial skills, there will not be adequate employment opportunities for the workforce to utilise their skills and education. Impediments to risk-taking need to be minimised so that businesses can create jobs in response to enhanced labour market flexibility and the availability of skills. Some decrease in unemployment could be achieved through increased relative wage flexibility, rather than through increased aggregate wage flexibility. That is, the wide range of unemployment rates across the different groups in the workforce may reflect the inability of the wage-setting system to allow relative wages to adjust to imbalances in labour demand and supply. Allowing greater adjustment in relative wages may also deliver a lower aggregate wage level, as relative wages fall for those groups experiencing the higher unemployment rates. An outcome where wages fall for certain sections of the population may raise concerns about equity. However, the inequity of lower wages must be weighed against the inequity of unemployment, particularly given that unemployed households are, in general, lower in the income distribution than low-wage households. An important issue in such a debate is whether the employment generated by the lower wage outcomes is the first point in a career path that leads to higher wages later in the working life, or whether those gaining employment predominantly remain locked into low-wage employment. The evidence on this in Australia is, however, fairly scant.

/pdf/unemployment-and-the-australian-labour-market-4ift3jkm52.pdf

Unemployment and the Australian labour market

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Unemployment and the Australian labour market