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Assessing the Impact of Worker Compensation Premiums on Employment in Tasmania

Paul Blacklow

No 10449, Working Papers from University of Tasmania, Tasmanian School of Business and Economics

Abstract: The aim of this study is to obtain estimates of the impact of worker compensation premiums on employment in Tasmania. To do so it proposes a basic reduced form employment equation as a function of wages, output, time and lagged employment using lags and Australian output figures as instruments. Using quarterly time series an estimate of the wage elasticity of employment for Tasmania over 1984.3 to 2008.1 is obtained that is comparable to other Australian employment studies. It also estimates an annual panel model across 3-digit industries together with worker compensation premium data to obtain a direct estimate of the impact of worker compensation premium on employment across Tasmania and also at a 1-digit industry level from 1992 to 2008.

Keywords: Wage Elasticity of Employment; Workers’ Compensation Premiums (search for similar items in EconPapers)
JEL-codes: J23 J32 J38 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2009-09-01, Revised 2010-11-29
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Published by the University of Tasmania. Discussion paper 2010-05

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