This paper looks at the effects of changes in the age composition of the labour force on aggregate male and female unemployment rates. While it has been common to look at aggregate participation rate changes in terms of a weighted average over age groups this seems not to be the case for unemployment. We show in this paper that changes in the age composition of the labour force (driven mainly by changes in the age distribution of the population) has affected the aggregate unemployment rates in a systematic and, with hindsight, predictable manner. Amongst other things, we show that in the past decade or so, policy makers have benefited from a not inconsequential “free lunch” in that changes in the age composition of the labour force have been pulling the aggregate unemployment rates down below what it would otherwise be by around one percent of the labour force. We also show that this free lunch is now coming to an end.

We use data from the ABS National Health Surveys for 1989/95 and 1995 to examine differences in health care expenditures and health outcomes by family structure. We find that, on average, female single parents tend to experience poorer health outcomes, and exhibit more ‘risky’ health behaviours (particularly smoking), compared to adults in ‘two-parent’ families. Children in female single parent families tend to have more chronic health conditions than children in two-parent families. We also find that single parent families tend to spend a lower proportion of their income on health care, while receiving fewer indirect health care resources through government. Policies that may help reduce the economic and health disadvantages facing single parent families are considered.

It is the purpose of this study to examine the effects of the unionisation status of US school districts on teacher job satisfaction. Using an ordered probit analysis and a sample of public school teachers, results of the present study suggest that teachers working in unionised districts are, overall, less satisfied with their jobs than are teachers in non-unionised districts. However, teachers in unionised districts were less likely to leave for better pay and were more enthusiastic about teaching than teachers in non-unionised districts. Hence, even though teachers in unionised districts were generally less satisfied with their jobs, they were more satisfied with regards to certain specific aspects of their positions.

Irresponsible lending practices on the part of financial institutions and proliferation of tradable derivatives were key causal agents of the 2008 financial crisis. However, it is less clear why, historically, loose credit arrangements were so widespread. Somewhat misleadingly, much conjecture has laid blame at the feet of financial institutions themselves. While it is true that duplicitous and even corrupt lending practices were consequential antecedents of the crisis, a legacy commitment to certain – laudable – elements of New-Dealism created context for these elements to become established. To understand really what went wrong, it is necessary to look back before the 2000s and appreciate the interaction that was occurring between a long-term policy commitment to neoliberalism and piecemeal/fragmented application of approaches that aimed to assist financially disadvantaged people. Using the analogy of heart-attack pathology to guide some of its analysis, this essay argues for better policy-integration.

This article argues that the current global economic crisis is an outcome of the excessive growth of the financial market over the real economy, and hence, of fictitious profits over real profits. In investigating the interrelation between the financial market and the real economy, it makes a comparative inquiry into two key assertions regarding economic crisis within Marxism: the tendency for the rate of profit to fall and overaccumulation of capital. Accepting the claim that economic crisis is inherent to capitalism, this article probes the role of countervailing tendencies in battling the tendency for the rate of profit to fall. While crisis is an outcome of both the extensive growth of fictitious profits and the tendency for the rate of profit to fall, the latter is identified as the fundamental reason for the current crisis. Labour market reforms that were implemented following the emergence of the economic crisis represent the resurgence of countervailing tendencies and are the most explicit evidence that the fundamental reason for the crisis resides in the real economy.

The paper employs George Orwell's notion of doublethink in examining three contemporary industrial relations issues. They are the Cole Royal Commission into the building and construction industry, bargaining fees and employee entitlements. The Cole Royal Commission was an inquisition into the heresy of unionism. The decision of a Full Bench of the Australian Industrial Relations Commission on bargaining fees has found that collective bargaining does not pertain to the employer-employee relationship. This decision encourages free-riding to weaken unions. On the other hand, various employee entitlement schemes, developed by the Australian government, to meet obligations of companies to employees when the former collapse, enable, or encourage, companies to free-ride on the backs of taxpayers. The paper concludes with the observation that a bleak future awaits unions.

The need for a new economy is great and the obstacles are many: growing inequalities within and between nations and regions, new complicity between corporations and non-democratic political regimes and failure of workers worldwide to make common cause. There are alternative models, indicating that a more egalitarian approach does not necessarily reduce living standards. Environmental degradation cannot be addressed by a technological fix: the threat to our long-term survival is pre-figured in the impact of climate change and corporate rapacity on the land and sea resources of the indigenous minorities who live as humanity has lived for most of its existence. A 10-point plan for a follow-up to the United Nations’ Millennium Development Goals is suggested, but it will work only if solidarity networks can be built across divides of ascribed race, religion and nominal income levels, to express the will of the people in place of the government representatives who are prepared to gamble the future of humanity for corporate profit and power.

Although the issue of redistribution is glossed over by Marglin, there are three reasons why decarbonisation must be accompanied by a massive scaling up of redistribution from the global North to South if the agenda is to be founded on a social justice approach. First, constructing a capital infrastructure in the South in a manner that maximises the potential for decarbonisation would tend to be very import-intensive. Hence, it would require external financing or else risk running aground through balance of payment constraints. Second, there is already a tendency in the global economy of siphoning resources from South to North, in particular through the increasing control over flows of value and wealth by Northern corporations from their commanding positions within international networks. Southern productivity needs to be contextualised from this perspective given the risk that climate negotiations lock in the subordination of Southern countries within these global networks, rather than seeking ways for Southern producers to leverage more value for the output and carbon emissions they are already producing. Third, population and labour transitions in the South place relatively greater pressure than in the past on employment generation in tertiary (service) sectors, in which distributive and redistributive processes play essential roles in bolstering labour demand. The neglect of global redistribution could undermine the capacity of Southern countries to face these broader development challenges, which are already immense even in the absence of decarbonisation. A key question is how to organise global redistributive transfers in a manner that does not continue to subordinate Southern populations to Northern interests. The challenge for decarbonisation is the forging of a political will for redistribution that is motivated by climate change rather than geopolitics, and that respects national ownership and self-determination.

This historical paper analyses the distributional consequences of computerisation on the wage share of income in United Kingdom (UK) workplaces in the first decade of this century. The reasons why computerisation might increase a firm’s income but reduce the share assigned to wages are still not well understood. The uniquely rich Workplace Employment Relations Survey (WERS) 2004–2011 includes firm-level measures of the main production inputs and outputs, and thus allows an analysis of the main mechanisms through which increased computer usage influenced the wage share of income in UK workplaces over this period. This analysis shows that the proportion of employees using computers impacted the wage share in ways that were at odds with two mainstream views: that computers complement capital, and that labour can be easily replaced by capital. The results show that the proportion of employees using computers reduced the wage share by disproportionally increasing the productivity of the least skilled employees, who were not proportionally compensated for their increase in productivity. The stability of the wage share, over the period of interest, is explained by the rise in a workplace’s share of professional employees and by a rise in work effort. This positive contribution to the wage share was counteracted by an increased share of employees using computers and by a reduction in the share of employees whose pay was negotiated by unions, thereby contributing to a decline in the wage share of firm income.

At various times in Australia’s recent history, the Commonwealth government has used the tax system to support its public health policy goals. Tax concessions to particular industries or groups of taxpayers cost the government the same as direct subsidies. However, the income distribution of these tax ‘carrots’ and ‘sticks’ has not previously been analysed. This study breaks new ground by examining how the benefits of tax concessions for health expenditures were distributed among taxpayer income groups in the four decades since 1960, and how this affects the progressivity of Australia’s system of funding health care. It is found that around half of the $2 billion tax subsidy for private health insurance accrues to the taxpayer group with the highest third of incomes.

With economic reform, in China, labour turnover of seafarers became more possible. However, little attention has been paid to its consequences. A limited literature indicates that Chinese seafarers may leave state-owned enterprises to become freelance seafarers, working in the global labour market for better wages and employment conditions. There have been predictions of a substantial increase in seafarer export, with China becoming the top labour supplier to the global maritime industry. However, such expectations have been largely unmet. Through 157 qualitative interviews with seafarers and managers in Chinese ship crewing agencies, we explore some reasons why this may be so. The findings suggest that Chinese seafarers are in fact limited in their willingness and ability to leave their companies. This is due to a complex mixture of organisational, regulatory, infrastructural and personal contexts that are their everyday experience of work in China. Analysis further suggests that the underdevelopment of a national regulatory infrastructure and welfare support mechanism for seafarers, along with poor implementation of the Maritime Labour Convention 2006, combine to limit the extent of the reform of the Chinese seafaring labour market. Together, these factors help to explain why China’s seafaring labour export has been far lower than anticipated.

This article provides information concerning various aspects associated with industrial disputes or strikes in Australia in the years 1980 to 1990. Losses to production and output from other sources are compared to those that result from industrial disputation. Australia’s strike record is compared to that of other OECD countries. An explanation is developed concerning Australia’s propensity for a high proportion of short strikes, and disputes which end with a resumption of work without negotiations. The article also explores reasons for the decline in the level of industrial disputation which occurred in Australia during the decade of the 1980s.

This paper examines the arguments for the privatisation of airports in Australia. The general arguments for privatisation are evaluated and found not to be universally applicable. There is no a priori argument in that all activities operate optimally in the private sector. Rather, the costs and benefits of each particular case need to be examined. This is then done with respect to airports. Firstly, the question of whether airports should be operated as networks or as individual optimizing entities is considered. It is shown that with respect to both pricing and investment decisions, efficiency requires retention of the network. Due to the nature of the product, the market will not deliver an efficient, competitive outcome. In this light the specifics of the Australian privatization proposals are examined, and found wanting. The case for privatization of airports is extremely weak.

Women workers employed in the export-oriented manufacturing sector in Malaysia have traditionally had poor access to representation by trade unions for two reasons. Firstly, government rules and regulations have prevented sectoral trade unions from representing large sections of the workforce, and secondly, unions themselves have not considered women their primary constituency. As a result, non-governmental organisations (NGO), rather than trade unions, have played an important role in educating women workers about their rights since the 1980s. In the garment industry in recent years, NGO activism has precipitated a change in the trade unions’ focus towards women workers in general, and towards female overseas migrant workers in particular. Where once unions viewed migrant workers as undermining the wages and conditions of Malaysian workers, they now assert their right to equality in the workplace. This paper explores the context in which NGOs became involved in union-like activities and unions’ responses to that involvement.

This article begins by assessing the evidence that there was, and is, a skill shortage in Australia, and notes that for some years the Howard government initially denied there was a problem of unmet demand for skilled people. It was not until late 2006 that we saw any kind of official acknowledgement of a problem. On 12 October 2006, Prime Minister Howard announced a ‘Skills for the Future’ policy that involved a commitment to spend $837 million over five years, and aimed ‘to help build a more highly skilled and responsive workforce to support Australia’s long-term economic growth’. Acknowledging that policy-making begins with the framing or constitution of a problem, assessments are offered of this federal government’s account of the ‘skill shortage’ problem. The questions posed in this article are: what policy initiatives during the Howard years were designed to address issues of training, and what was their potential for addressing the problem of an apparent shortage of skilled workers in Australia?

This is an edited version of a lecture by economist and former Australian Treasury Secretary (2001–2011) Dr Ken Henry, delivered at a Colloquium in honour of Professor J.W. Nevile, held at the University of New South Wales on 10 October 2012. Taking a practitioner’s perspective, the article surveys the management of the Australian economy from the 1970s to the present, with a focus on the reasons Australia escaped the global financial crisis of 2008 and the lessons for macroeconomic policymakers to be drawn from that experience. The author concludes that macroeconomic policy practitioners have to think deeply about microeconomic connections and the potency of different instruments in addressing shocks with different sources. They also have to deal with considerable uncertainty. The global financial crisis demonstrated forcefully that there is no separation between macroeconomics, financial system stability, prudential regulation, micro-level incentive structures and market efficiency.

In this article, we consider the mainsprings of John Nevile’s many contributions to economics. John has repeatedly argued that because ‘economic actions, institutions and policies affect people’, they have an ethical dimension (Hawtrey and Nevile, 1986: 1), and he has stressed the importance of understanding the value judgements on which economics rests. His policy suggestions are aimed at improving social justice and the well-being of the most vulnerable. Apart from his deep knowledge of economic theory, his Christian faith provides an important foundation for his analysis, particularly of policy.

This paper addresses two questions with regard to Australia’s unemployment policies over the last decade: namely, the extent to which labour market reform has led to increased labour market flexibility; and the extent to which increased output per worker has meant that strong GDP growth has been translated into correspondingly large reductions in unemployment. With regard to the first question, we use shifts in the Beveridge Curve as a measure of changes in flexibility (following Solow). Shifts in the Beveridge Curve suggest that changes in the efficiency of labour market matching reflect the cyclical effects of hysteresis rather than the effects of labour market reform. With regard to the second question, we decompose changes in the output-employment ratio into structural effects, average hours effects, and residual factor intensity effects. We identify those sectors of the economy in which output per worker has increased significantly.

This paper is a preliminary investigation of the impact of the changing legal structures of employment on the tax system and the tax system on the structure of jobs. This issue is explored with special reference to the growth of contractor employment in the Australian construction industry. The paper shows how tax liabilities for individuals can be halved where they are deemed to be contractors. The paper estimates that in the mid 1990s this resulted in the average construction contractor paying around $6,000 a year less than equivalent PAYE workers. Losses to tax revenue could, therefore, be up $2.2 billion annually. The paper concludes that more research is required into the nexus between tax and employment structures. This dynamic has major implications for the future of work as well as the taxation system.