Archives for posts with tag: Economics

Ross Gittins’ column in Saturday’s Sydney Morning Herald was devoted to the topic of minimum wages. Among other things, he explained the ‘dynamic monopsony’ model of labour markets. These models are associated in particular with Alan Manning of the London School of Economics, who set out the theory at length in his 2003 book Monopsony in Motion: Imperfect Competition in Labor Markets.

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The government announced in its recent budget that pensions (including the Disability Support Pension and Age Pension) will no longer be pegged to wages. Instead, they’ll only rise in line with the CPI.

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Have real wages in Australia grown faster than labour productivity?

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I’ve seen a few suggestions lately (eg. in the Fin) that Australians should envy the New Zealand economy’s performance. Here are a few charts to keep in mind when comparing the two countries.

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I’m trying to recreate as many of The Atlantic’s 44 most important charts of 2013 as I can using Australian data. This is part 2 of my series – part 1 is here.

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The Atlantic ran a piece recently titled The Most Important Economic Stories of 2013 – in 44 graphs.  I thought it might be interesting to recreate the graphs using Australian data, where possible. I’ve taken the US graphs, selected by a range of economists and economics writers in the US, and tried to recreate them the best I can using the Australian data I have to hand. The first instalment is below – I’ll try and post the rest soon.

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Listening to the Treasurer and others, you may get the impression that a blowout in spending has caused a structural deficit. This does not accord with the analysis of the independent Parliamentary Budget Office. I alluded to this in my piece in the Guardian the other day, but I think it’s worth quoting the PBO at length:

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After reaching an all-time high of 65.8% in November 2010, the proportion of people aged 15+ who are either in work or actively looking for work has declined sharply, hitting 64.8% in October this year. An important question for policy makers is this: is the participation rate declining because people are being discouraged from looking for work, or is it declining as a natural consequence of the ageing of the population?

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