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).

/pdf/booming-sector-and-dutch-disease-economics-survey-and-496l2h3drv.pdf

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

Between a Rock and a Hard Place: Economic Policy and the Employment Outlook for Indigenous Australians

6. Real Wages, Employment, and Wage Dispersion in U.S. and Australian Labor Markets

Trevor Winchester Swan 1918–1989

High welfare withdrawal rates generate high effective marginal tax rates and work disincentives; but reducing withdrawal rates extends welfare to the better-off. We analyse pension taper reduction effects for lone mothers subject to the Australian tax and welfare reforms of July 2000. The changes in work incentives were trivial. Taper reductions extended income support and provided larger family payments to high income lone mothers previously excluded from welfare. Approximately 90 per cent of the better-off group now made eligible for income support had a long history of welfare reliance. The taper reduction encouraged them to stay on welfare longer.

Cut-offs, Knock-ons And Welfare Payment Taper Changes: An Evaluation of the July 2000 Tax and Welfare Changes for Lone Mothers

Detiorating labour market conditions worsen the financial situation of the disabled,reduce the opportunity costs of disability benefit program participation, and increasethe demand for the benefit; they may also lead the administrative authority to lowerthe eligibility criteria to accommodate the impact of worsening labour marketconditions. This paper uses Australian aggregate data to shed light on the impactof labour market conditions on applications and grants of the Disability SupportPension (DSP) in Australia. The results provide supportive empirical evidence tothe theory that worsening labour conditions increase applications and grants ofdisability benefits. The results also show that policy changes play an importantrole in the growth of the program. 1. Introduction The Disability Support Pension (DSP) is the payment for people of workingage with an illness or injury for a prolonged period of time that preventsthem from undertaking full time employment. Prior to 1991, this paymentwas known as the Invalid Pension (IP). In this paper both the Invalid Pensionand the Disability Support Pension are referred to as DSP.Over the last three decades, the DSP program has grown rapidly. Thenumber of DSP recipients increased from 134,000 in 1971 to 602,000 in 2000,with an average annual growth rate of 5.32 per cent. This growth is muchgreater than that of the DSP age eligible population, which increased from7.8 million in 1971 to 12.2 million in 2000, with an average annual growthrate of 1.55 per cent.

Robert Gregory

Papers

Between a Rock and a Hard Place: Economic Policy and the Employment Outlook for Indigenous Australians

6. Real Wages, Employment, and Wage Dispersion in U.S. and Australian Labor Markets

Trevor Winchester Swan 1918–1989

Cut-offs, Knock-ons And Welfare Payment Taper Changes: An Evaluation of the July 2000 Tax and Welfare Changes for Lone Mothers

Labour Market Conditions, Applications and Grants of Disability Support Pension (DSP)