Determinants of employment and labour force participation: A cohort analysis of Indigenous and non-Indigenous Australians, 1986-96

Abstract

<p>Data from the 1986, 1991 and 1996 Censuses is used to conduct a cohort analysis of the probability of employment and participating in the labour force for indigenous and non-indigenous males and females. Single-year age cohorts are used in the first ever longitudinal regression analysis of indigenous labour force status. The other contribution of this paper is to analyse labour market processes at an aggregate level by using census information on the entire Australian population (separately for indigenous and other Australians). By distinguishing aggregate and micro-labour market processes the analysis details what happens to the population, on average, as the level of educational attainment increases.</p> <p>This paper demonstrates that factors which are related to the probability of employment and participating in the labour force for the indigenous population differ from those for the non-indigenous population. At an aggregate level, it is found that the increasing educational attainment of indigenous Australians which occurred between 1986 and 1996 has not resulted in the anticipated improvements in employment levels. In contrast, employment was found to be positively related to increases in educational attainment in the non-indigenous population. Marital status is found to be the most important determinant of the probability of employment and participating in the labour force for indigenous people, especially females. This may reflect the large financial disincentives to work facing many married indigenous females.</p> Show more