Wage and employment rates in New Zealand from 1991 to 2001

Abstract

This paper examines the simultaneous determinants of employment and wage rates for people of working age in New Zealand. The determinants are as anticipated and similar to results in other countries. In addition to the effects of the usual variables (such as, education, age, family composition), it is found that unemployment affects the probability of employment negatively, but has no effect on wage rates, living with one’s parents decreases the employment probability of singles but increases it for sole parents, and the change in the age of eligibility for the New Zealand Superannuation affects the employment decision, indicating that individuals reacted to incentives to participate at an o..