Long-term Unemployment and the Labour Market: some further results

In a previous Briefing Paper we discussed the current high rate of long-term unemployment. We described the process by which the ratio of long-term unemployment to total unemployment was determined and suggested some explanations for the rapid rise in long-term unemployment since 1980. We also investigated the role of long-term unemployment in shifting the relationship between unemployment and vacancies. In this Briefing Paper we extend our study to consider the relationship between unemployment and inflation. In particular we discuss the apparent failure of high unemployment to affect the growth of real wages. Finally we compare some policies for reducing unemployment.     

A Measure of the Incidence of the Costs of Structural Change: The Experience of Birth place Groups in the Australian Labour Force during the Seventies*

During the 1970s there were some marked shifts in the occupational composition of the Australian workforce. It is sometimes argued that these had a particularly adverse effect on migrants. However we conclude that the structural pressures of the early 70s had only a minor impact on the relative labour market performances of different birthplace groups in Australia. The analysis involves the construction of a measure of the incidence of the costs of structural change. The correlation between the measure applied to birthplace groups and various indicators of their labour market performances is found to be low.