Melbourne Institute of Applied Economic and Social Research - Research Publications
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ItemNo Preview AvailableWage Growth Distribution and Decline among Individuals: 2001-2017(Reserve Bank of Australia, 2019)We examine how wage growth is distributed across the Australian population over the period 2001 to 2017. We explore to what extent wage growth is explained by individual characteristics and job characteristics, while controlling for changes in aggregate factors. We also examine the link between low wage growth and financial well-being. The results show that post 2008, and particularly from 2013 onwards, wage growth had significantly slowed down. This result remains, even after controlling for a broad range of individual, household and job characteristics (and for time-invariant unobserved characteristics). Our results also show that the employee’s age, education, occupation and industry explain a large share of differences in wage growth. Conversely, the employee’s gender and employment contract seem less important. Overall, about half of the wage growth is explained by individual and job characteristics. Finally, we show that wage growth has a significant positive, but small, correlation with financial well-being indicators.
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ItemAustralian Children Growing Up with Opportunity(WILEY, 2017-09)Abstract This article focuses on the early years of children in Australia. It discusses the inequality of opportunity as reflected in the statistics and the potential impacts of this inequality. A brief literature review is provided regarding the impact of formal childcare and preschool attendance on child development, with a specific focus on the impact for children from disadvantaged families. The article concludes with a discussion of possible policy directions to counteract the inequality of opportunity.
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ItemThe role of financial factors in the mobility and location choices of General Practitioners in Australia(BioMed Central, 2019-05-24)Background The geographic distribution of health workers is a pervasive policy concern. Many governments are responding by introducing financial incentives to attract health care workers to locate in areas that are underserved. However, clear evidence of the effectiveness of such financial incentives is lacking. Methods This paper examines General Practitioners’ (GPs) relocation choices in Australia and proposes a dynamic location choice model accounting for both source and destination factors associated with a choice to relocate, thereby accounting for push and pull factors associated with job separation. The model is used to simulate financial incentive policies and assess potential for such policies to redistribute GPs. This paper examines the role of financial factors in relocating established GPs into neighbourhoods with relatively low socioeconomic status. The paper uses a discrete choice model and panel data on GPs’ actual changes in location from one year to the next. Results This paper finds that established GPs are not very mobile, even when a financial incentive is offered. Policy simulation predicts that 93.2% of GPs would remain at their current practice and that an additional 0.8% would be retained or would relocate in a low-socioeconomic status (SES) neighbourhood in response to a hypothetical financial incentive of a 10% increase in the earnings of all metropolitan GPs practising in low-SES neighbourhoods. Conclusion With current evidence on the effectiveness of redistribution programmes limited to newly entering GPs, the policy simulations in this paper provide an insight into the potential effectiveness of financial incentives as a redistribution policy targeting the entire GP population. Overall, the results suggest that financial considerations are part of many factors influencing the location choice of GPs. For instance, GP practice ownership played almost as important a role in mobility as earnings.
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ItemPaid Parental Leave evaluation: Phase 1(Commonwealth of Australia, 2012)
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ItemChildcare Use and Its Role in Indigenous Child Development: Evidence from the Longitudinal Study of Indigenous Children in Australia(Wiley, 2019-03-01)We investigate patterns of childcare use and its influence on the cognitive development of Indigenous children. The influence of childcare on Indigenous children's cognitive outcomes is less well understood than for non-Indigenous children due to a lack of appropriate data. We focus on a cohort of Indigenous children in Australia who have been followed from infancy and for whom rich information on childcare use and cognitive outcomes is observed. Compared to Indigenous children who never participated in childcare, Indigenous children who participated in childcare performed better on several early cognitive outcomes. Using regression and propensity score matching, we show that this difference is driven by selection into childcare, with children from more advantaged families being more likely to attend formal childcare. However, matching analysis results suggest that relatively disadvantaged children might benefit more from attending childcare, as indicated by the positive estimated effects found for those who never attended childcare.
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ItemPaid Parental Leave and Female Labour Supply: A Review(Wiley, 2018-03)This review is based on the international and Australian literature on paid parental leave. It does not aim to be exhaustive but focuses on the impact paid parental leave has on the labour force participation of mothers in developed countries. Four aspects of paid parental leave are explored, including the impacts of: introducing paid parental leave; changing the duration of existing paid parental leave; changing the generosity of existing paid parental leave payments; and paid paternity leave. It interprets the implications in the context of Australia, and includes descriptive information on the recent and current situation in Australia.
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ItemPublic, private or both? Analyzing factors influencing the labour supply of medical specialists(WILEY, 2018-05)Abstract This paper investigates the factors influencing the allocation of time between public and private sectors by medical specialists. A discrete choice structural labour supply model is estimated, where specialists choose from a set of job packages that are characterized by the number of working hours in the public and private sectors. The results show that medical specialists respond to changes in earnings by reallocating working hours to the sector with relatively increased earnings, while leaving total working hours unchanged. The magnitudes of the own‐sector and cross‐sector hours elasticities fall in the range of 0.16–0.51. The labour supply response varies by gender, doctor’s age and medical specialty. Family circumstances such as the presence of young dependent children reduce the hours worked by female specialists but not male specialists. Résumé Public, privé ou les deux? Analyse des facteurs influençant l’offre de travail des médecins spécialistes. Ce mémoire étudie les facteurs influençant l’allocation du temps des médecins spécialistes entre le secteur privé et le secteur public. Un modèle structurel de choix discret d’offre de travail est calibré ans lequel les spécialistes choisissent entre des arrangements caractérisés par le nombre d’heures de travail dans le secteur public et le secteur privé. Les résultats montrent que les spécialistes répondent aux changements dans la nature des gains en réaménageant leurs heures de travail vers le secteur qui offre des gains relativement plus élevés, tout en gardant leurs heures totales de travail inchangées. Les magnitudes des élasticités de l’offre des heures à l’intérieur d’un secteur et entre secteurs se situent dans un intervalle entre 0.16‐0.51. La réponse de l’offre de travail varie selon le genre, l’âge et la spécialité. Le cadre familial, comme la présence de jeunes enfants à charge, tend à réduire les heures travaillées par les femmes mais pas pour les hommes.
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ItemWhat factors affect physicians' labour supply: Comparing structural discrete choice and reduced-form approaches(WILEY, 2018-02)Little is known about the response of physicians to changes in compensation: Do increases in compensation increase or decrease labour supply? In this paper, we estimate wage elasticities for physicians. We apply both a structural discrete choice approach and a reduced-form approach to examine how these different approaches affect wage elasticities at the intensive margin. Using uniquely rich data collected from a large sample of general practitioners (GPs) and specialists in Australia, we estimate 3 alternative utility specifications (quadratic, translog, and box-cox utility functions) in the structural approach, as well as a reduced-form specification, separately for men and women. Australian data is particularly suited for this analysis due to a lack of regulation of physicians' fees leading to variation in earnings. All models predict small negative wage elasticities for male and female GPs and specialists passing several sensitivity checks. For this high-income and long-working-hours population, the translog and box-cox utility functions outperform the quadratic utility function. Simulating the effects of 5% and 10% wage increases at the intensive margin slightly reduces the full-time equivalent supply of male GPs, and to a lesser extent of male specialists and female GPs.
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ItemTaxes, transfers, family policies and paid work over the female life cycle(ANU Press, 2017)Gender inequality is profoundly unjust and in clear contradiction to the philosophy of the ‘fair go’. In spite of some action by recent governments, Australia has fallen behind in policy and outcomes, even as the G20 group of nations, the Organisation for Economic Co-operation and Development and the International Monetary Fund are paying renewed attention to gender inequality. Tax, Social Policy and Gender presents new research on entrenched gender inequality in a comparative framework of human rights and fiscal sustainability. Ground-breaking empirical studies examine unequal returns to education for women and men, decision-making about child care by fathers and mothers, the history and gendered effects of the income tax and family payments, and women in the top 1 per cent. Contributors demonstrate how Australia’s tax, social security, child care, parental leave, education, work and retirement income policies intersect to compound gender inequality. Tax, Social Policy and Gender calls for a rethinking of equality and efficiency in tax and social policy and provides new policy solutions. It offers a pathway to achieve gender mainstreaming for women’s economic security and the wellbeing of all Australians.
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ItemA comparison of family policy designs of Australia and Norway using microsimulation models(Kluwer Academic Publishers, 2010)Many of the Australian family support schemes are income-tested transfers, targeted towards the lower end of the income distribution, whereas the Norwegian approach is to provide subsidized non-parental care services and universal family payments. We contrast these two types of policies and discuss policy changes within these policy types by presenting results from simulations, using microsimulation models developed for Australia and Norway. Labor supply effects and distributional effects are discussed for the hypothetical policy changes of replacing the means-tested family payments of Australia by the Norwegian universal child benefit schedule and vice versa, and of reducing the childcare fees in both countries. The analysis highlights that the case for policy changes is restricted by the economic environment and the role of family policy in the two countries. Whereas there is considerable potential for increased labor supply of Australian mothers, it may have detrimental distributional effects and is likely to be costly. In Norway, mothers already have high labor supply and any adverse distributional effects of further labor supply incentives occur in an economy with low initial income dispersion. However, expenditure on family support is already high and the question is whether this should be further extended. © 2009 Springer Science+Business Media, LLC.