This paper presents a theoretical analysis of the 'Dutch Disease': the phenomenon whereby a boom in one traded goods sector squeezes porfitability in other traded goods sectors, both by directly bi ...

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Booming Sector and De-Industrialisation in a Small Open Economy

Death is the new sex, last great taboo in Western society and Western medicine, as Richard Smith discusses in his editorial (p 129). In the trinity of births, marriages, and deaths, only death does not have glossy magazines devoted to stylish consumption at the attendant ceremonies. On the web, of course, …

Death and dying

THIS paper aims to consolidate a growing literature on booming sector economics and the Dutch Disease. The term Dutch Disease refers to the adverse effects on Dutch manufacturing of the natural gas discoveries of the nineteen sixties, essentially through the subsequent appreciation of the Dutch real exchange rate.' The paper is also intended to fill some theoretical gaps, notably in sections 5 (immigration), 6 (endogenous terms of trade effects), 7 (domestic absorption) and 10 (dynamics). The issues have been widely discussed in many countries, notably the oil exporters. The key article in the British discussion on the effects of North Sea oil is Forsyth and Kay (1980).2 Booming Sector models can also illuminate many historical episodes where there have been sectoral booms, with adverse general equilibrium effects on other sectors. Thus there is wide scope for application in economic history. For example, Forsyth and Nicholas (1983) have interpreted the consequences on Spanish industry of the inflow of American treasure in the sixteenth century in Dutch Disease terms. Cairnes (1859) recognised that the gold discoveries in Australia in the eighteen fifties had Dutch Disease effects on some Australian industries, and this episode has recently been studied in Maddock and McLean (1983).

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Booming sector and dutch disease economics: survey and consolidation

http://faculty.smu.edu/millimet/classes/eco7321/papers/hartog 2000.pdf

Over-education and earnings: Where are we, where should we go?

This paper tests the hypotheses that overall wage compression and low female supply relative to demand reduce a country's gender pay gap. Using micro-data for 22 countries over the 1985-94 period, we find that more compressed male wage structures and lower female net supply are both associated with a lower gender pay gap. Since it is likely that labor market institutions are responsible for an important portion of international differences in wage inequality, the inverse relationship between the gender pay gap and male wage inequality suggests that wage-setting mechanisms, such as encompassing collective bargaining agreements, that provide for relatively high wage floors raise the relative pay of women, who tend to be at the bottom of the wage distribution. Consistent with this view, we find that the extent of collective bargaining coverage in each country is significantly negatively associated with its gender pay gap. Moreover, the effect of pay structures on the gender pay gap is quantitatively very important: a large part of the difference in the gender differential between high gap and low gap countries is explained by the differences across these countries in overall wage structure, with another potentially important segment due to differences in female net supply.

https://papers.ssrn.com/sol3/Delivery.cfm/nber_w8200.pdf?abstractid=265295&mirid=5

Understanding International Differences in the Gender Pay Gap

The twenty-five years after WW 2 witnessed strong labour market institutions and beneficial labour market outcomes - high wage growth and integration of low-skilled immigrants Then came the macro shocks of the mid 1970s Labour market outcomes deteriorated as full-time employment population ratios fell, particularly among males; unemployment and welfare use increased; and real wages grew slowly The golden age passed In response, successive governments have increasingly begun to dismantle the institutional framework We address this transition within a simple long run graphical framework to help us marshal facts and arguments and to discuss the likely impact of institutional reform

From Golden Age to Golden Age: Australia's "Great Leap Forward"?

From the administrative data of the Australian Department of Family and Community Services it is found that a large proportion of Disability Support Pension (DSP) recipients transferred from unemployment benefits. Among those who transferred to DSP from unemployment benefits, a large proportion experienced multiple spells of income support receipt prior to the transition and a majority had more than a half-year pre-transition unemployment duration, with the average pre-transition unemployment duration being more than one year. These findings suggest that the unemployment benefit is not simply a 'hold-on' benefit for those who experienced the unemployment - DSP transition. This article further examines what factors are associated with the transition. It is found that, among other things, the probability of transition to DSP from unemployment increases with duration on unemployment benefits.

Unemployment Duration and Inflows onto the Disability Support Pension Program: Evidence from FaCS LDS Data

The 25 years after World War II witnessed strong labour market institutions and beneficial labour market outcomes – high wage growth and integration of low-skilled immigrants. Then came the macro shocks of the mid-1970s. Labour market outcomes deteriorated as full-time employment–population ratios fell, particularly among men; unemployment and welfare use increased; and real wages grew slowly. The golden age passed. In response, successive governments have increasingly begun to dismantle the institutional framework. We address this transition within a simple long-run graphical framework to help us marshal facts and arguments and to discuss the likely impact of institutional reform.

/pdf/from-golden-age-to-golden-age-australia-s-great-leap-forward-3geckw7vom.pdf

Robert Gregory

Papers

From Golden Age to Golden Age: Australia's "Great Leap Forward"?

Unemployment Duration and Inflows onto the Disability Support Pension Program: Evidence from FaCS LDS Data

From Golden Age to Golden Age: Australia's ‘Great Leap Forward’?*

An Analysis of Relationships Between Import Flows to Australia and Recent Exchange Rate and Tariff Changes

Work and welfare in the years ahead