A Dynamic Panel Macroeconometric Model for Labour Markets: Evidence Across Australian States

نویسندگان

  • Kausik Chaudhuri
  • Jeffrey Sheen
چکیده

We construct a dynamic panel error correction model of the Australian labour market using macroeconomic data across seven states and 27 years. Using panel cointegration tests, and fully modified OLS estimates, we test 3 competing long run hypotheses: real wage-productivity relation; real wage-marginal disutility relation; and the wage curve hypothesis. We find evidence to prefer the first. The SUR estimates of the short-run model support expectations-augmented Phillips curves for wages and prices, and Keynesian demand-led employment growth, with considerable heterogeneity across states.

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تاریخ انتشار 2001