Razzak, Weshah (2008): On The dynamic of search, matching and productivity in New Zealand and Australia. Forthcoming in: International Journal of Applied Economics : pp. 1-33.
Download (265kB) | Preview
As far as we know there has been no, or very little, empirical examination of search models and unemployment – vacancy relationship in New Zealand. We empirically examine dynamic matching functions in the New Zealand labor market over the period 1986-2006. Further, it is well documented that although New Zealand and Australia embarked on similar wide economic reforms almost 25 years ago, the level of New Zealand’s labor productivity is still lower than that of Australia (Razzak, 2007) and lower than the US productivity level (Prescott, 2002). It is has been argued that among the main explanatory variable is the low level of capital intensity – capital per hour worked - Razzak (2007) and Hall and Scobie (2005). However, there has been no formal explanation for the low level of capital intensity. This paper explains why capital investments are relatively lower in New Zealand. We do this by examining the dynamics of the labor markets in New Zealand and Australia.
|Item Type:||MPRA Paper|
|Original Title:||On The dynamic of search, matching and productivity in New Zealand and Australia|
|Keywords:||Matching Function, Beveridge curve, Labor Productivity|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J64 - Unemployment: Models, Duration, Incidence, and Job Search
C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes
|Depositing User:||Weshah Razzak|
|Date Deposited:||16. Apr 2008 01:56|
|Last Modified:||13. Feb 2013 07:26|
Basu, P., May 2006, “Understanding Labor market Frictions: A Tobin’s Q Approach,” Unpublished Manuscript, University of Durham, U.K. presented at the Money, Macro and Finance Study Group Meeting at York University, September 2006.
Caroll, N, D. Hyslop, D. Marie, J. Timmins and J. Wood, 2002, “The Turbulent Labor Market,” Working paper, Motu Research.
De Francisco, A., 1999, “The Relationship Between Unemployment and Vacancies in Australia,” Applied Economics 31, 641-652.
Diamond, P. A., October 1982 a, “Aggregate Demand Management in Search Equilibrium,” Journal of Political Economy, Vol. 90, No. 5, 881-94.
Diamond, P. A., April 1982 b, “Wage Determination and Efficiency in Search Equilibrium,” Review of Economic Studies, Vol. 49, No. 2, 217-27.
Fontaine, Francois, March 2007, "A Simple Matching Model with Social Networks," Economics Letters, v94, n3, 396-401.
Hall, J. and G. Scobie, “Capital Shallowness: A Problem for New Zealand?” New Zealand Treasury Working Paper No. 5, 2005.
Hyslop, D. and D. Mare, November 2006, “Worker-Firm Heterogeneity and Matching: An Analysis Using Worker and Firm Fixed Effects Estimated from LEED,” Motu Economic and Public Policy Research and Statistics New Zealand Working Paper. Wellington, New Zealand.
Kangasharju, Aki; Pehkonen, Jaakko; Pekkala, Sari, January 2005, "Returns to Scale in a Matching Model: Evidence from Disaggregated Panel Data," Applied Economics, v37, n1 115-18.
Kano, Shigeki; Ohta, Makoto, January 2005, "Estimating a Matching Function and Regional Matching Efficiencies: Japanese Panel Data for 1973-1999," Japan and the World Economy, v17, n125-41.
King, I., 2003, “A Directed Tour of Search-Theoretic Explanations for Unemployment,” New Zealand Economic Papers, Vol. 37 (2), 245-67.
Merz, M. and E. Yashiv, 2005, “Labor and the Market Value of the Firm,” Working Paper, University of Bonn.
Mortensen, D., 1982, “The Matching Process as a Non-Cooperative / Bargaining Game,” in the Economics of Information and Uncertainty, J. McCall, (ed.), Chicago: University of Chicago Press, 233-58.
Mortensen, Dale T.; Nagypal, Eva, July 2007 "More on Unemployment and Vacancy Fluctuations," Review of Economic Dynamics, v10, n3 , 327-47.
Pissarides, C. A., 1984, “Search Intensity, Job Advertising and Efficiency,” Journal of Labor Economics 2:1, 128-43.
Pissarides, C. A., 1985, “Short-Run Equilibrium Dynamics of Unemployment, Vacancies, and Real Wages,” American Economic Review 75:4, 676-90.
Pissarides, C. A., October 1986, “Unemployment and Vacancies in Britain,” Economic Policy,500-59.
Petrongolo, B. and C. A., Pissarides, June 2001, “Looking into the Black Box: A Survey of matching Function,” Journal of Economic Literature Vol. XXXIX, 390-431. Phillips, P. C. B. and M. Loretan, 1991, “Estimating Long-Run Equilibria”, The Review of Economic Studies 58 (3), 407-436.
Razzak, W. A., 2007, “Explaining the Gap in Labor Productivity in Some Developed Countries,” Applied Econometrics and Economic Development, Vol. 7-2, July-December, 193-208.
Silverstone, B., 2001, “Some Aspects of Labor market Flows in New Zealand 1986-2001,” Working Paper No.2, Department of Economics, University of Waikato, Hamilton New Zealand.
Silverstone, B., 2006, “Help Wanted in New Zealand: The ANZ Bank Job Advertisement Series,” Working Paper Department of Economics, University of Waikato, Hamilton New Zealand.
Stevens, Margaret, "New Micro foundations for the Aggregate Matching Function, August 2007, " International Economic Review, v48, n3, 847-68.
Waldegrave, T., D. Anderson and K. Wong, 2003, “Evaluation of the Short-Term Impacts of the Employment Relations Act 2000,” Department of Labor Publications, Wellington, New Zealand.