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From Golden Age to Golden Age: Australia's ‘Great Leap Forward’? *
Author(s) -
FRIJTERS PAUL,
GREGORY ROBERT
Publication year - 2006
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2006.00316.x
Subject(s) - fell , unemployment , economics , immigration , labour economics , welfare , wage , welfare state , population , wage growth , demographic economics , development economics , market economy , economic growth , political science , sociology , geography , demography , cartography , politics , law
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.