Felix Leung

Decomposing Differences in Labour Force Status between Indigenous and Non-Indigenous Australians

Despite several policy efforts to promote economic participation by Indigenous Australians, they continue to have low participation rates compared to non-Indigenous Australians. This study decomposes the gap in labour market attachment between Indigenous and non- Indigenous Australians in non-remote areas, combining two separate data sources in a novel way to obtain access to richer information than was previously possible. It shows that among women at least two thirds of the gap can be attributed to differences in the observed characteristics between the two populations. For men, the differences in observed characteristics of the two populations can account for 36 to 47 percent of the gap. A detailed decomposition shows that lower education, worse health, and larger families (particularly for women) explain the lower labour market attachment of Indigenous Australians to a substantial extent. Compared with previous studies, this study is able to explain a larger proportion of the gap in employment between Indigenous and non-Indigenous people due to being able to include a larger set of explanatory variables.

Identifying Important Factors for Closing the Gap in Labour Force Status between Indigenous and non-Indigenous Australians

Despite substantial policy efforts to promote economic participation by Indigenous Australians, they continue to have low participation rates compared with non-Indigenous Australians. This study decomposes the gap in labour market attachment between Indigenous and non-Indigenous Australians in non-remote areas, combining two separate data sources in a novel way to obtain access to richer information than was previously possible. It shows that among women over 90 per cent of the gap can be attributed to differences in the observed characteristics between the two populations. For men, the differences in observed characteristics can account for 44–52 per cent of the gap. A detailed decomposition shows that lower education, worse health, and larger families (particularly for women) explain the lower labour market attachment of Indigenous Australians to a substantial extent. Compared with previous studies, this study is able to explain a larger proportion of the gap in employment between Indigenous and non-Indigenous people and hence provides greater insights into important factors for ‘Closing the gap’ policies.

Outcomes for Teenage Mothers in the First Years after Birth

This study compares the educational, employment, health and partnership outcomes of teenage mothers with outcomes of women first giving birth in their twenties and those without children. The study finds that teenage motherhood has a range of negative effects, some of which worsen over time (e.g. educational outcomes) and others diminish over time (e.g. employment effects). Although some of the associations of teenage motherhood with poorer outcomes in the first years after birth are unlikely to be causal since they disappear after ensuring treatment and control group are comparable, other associations remain strong. Propensity score matching analysis suggests that relative to childless women: teenage mothers are less likely to complete Year 12, be employed, and be in good health; they are more likely to smoke; and have less personal income.

Work-Related Training and the Probability of Transitioning from Non-Permanent to Permanent Employment

It is widely believed that work-related training increases a workers probability of moving up the job-quality ladder. This is usually couched in terms of effects on wages, but it has also been argued that training increases the probability of moving from non-permanent forms of employment to more permanent employment. This hypothesis is tested using nationally representative panel data for Australia, a country where the incidence of non-permanent employment, and especially casual employment, is high by international standards. While a positive association between participation in work-related training and the subsequent probability of moving from either casual or fixed-term contract employment to permanent employment is observed among men, this is shown to be driven not by a causal impact of training on transitions but by differences between those who do and do not receive training, that is selection bias.