INACTIVITY AND LABOUR MARKET ATTACHMENT IN BRITAIN

This paper examines the transitions between the labour market and inactivity in Britain between 1995 and 2004. A substantial degree of behavioural heterogeneity exists between inactive individuals, and the social security system appears to influence both the timing and probability of moving between labour market states. The results presented here suggest that policy makers should not be misled by the term ‘hidden unemployment’, into thinking that substantial spare capacity exists on the periphery of the labour force. In light of recent proposals to reduce the number of Incapacity Benefit claimants, it is important to note a high degree of detachment among the long‐term sick and disabled, reinforced by duration dependence and poorer educational attainment.     

SEGREGATION IN THE AUSTRALIAN LABOUR MARKET*

An important measure of the success of immigration is the assimilation of immigrants into the labour force of the host country. This criterion is important from both the perspective of immigrants themselves and that of the host country. Conversely, concentration of migrants in a few sectors is undesirable because of its adverse socio‐economic consequences. Since the pattern of distribution of migrant employment influences the structure and outcomes in the labour market in various ways, it attracts public, academic and policymakers’ attention. The present paper employs various numerical measures to estimate the degree of immigrant segregation across occupations and industries in Australia. The results indicate that the occupational distribution of immigrants is very similar to the proportion of native workers employed in the various occupations. This similarity also characterises the industrial distribution of immigrant employment. Thus, contrary to popular perception and findings for the United States, evidence from the Australian labour market does not indicate the existence of widespread immigrant segregation.