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Do changes in demographic characteristics explain declining male employment rates? Examination of the Australian case using a propensity score re-weighting decomposition approach

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  • David Black
  • Yi-Ping Tseng
  • Roger Wilkins

Abstract

Using Australian data spanning the period from 1981 to 2001, we apply a propensity score re-weighting decomposition approach to investigate the extent to which the large decline in the male employment population rate over this period can be attributed to changes in socio-demographic characteristics. We find that changes in observed characteristics account for little of the aggregate decline. However, changes in characteristics are found to be important for population sub groups. In particular, changes in partner status and partner employment status have acted to decrease employment rates of younger males, but increase employment rates of older males. A further finding is that, holding observed characteristics constant, there has been a very large decline in the employment rate of 55-64-year-olds with bachelor degree qualifications. In the course of applying the decomposition method, we illustrate that validity of inferences depends on 'appropriate' specification of the reweighting function.

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  • David Black & Yi-Ping Tseng & Roger Wilkins, 2011. "Do changes in demographic characteristics explain declining male employment rates? Examination of the Australian case using a propensity score re-weighting decomposition approach," Applied Economics, Taylor & Francis Journals, vol. 43(28), pages 4215-4226.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4215-4226
    DOI: 10.1080/00036846.2010.491445
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    References listed on IDEAS

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    1. Campbell, Nigel, 1999. "The decline of employment among older people in Britain," LSE Research Online Documents on Economics 51401, London School of Economics and Political Science, LSE Library.
    2. David H. Autor & Mark G. Duggan, 2001. "The Rise in Disability Recipiency and the Decline in Unemployment," JCPR Working Papers 226, Northwestern University/University of Chicago Joint Center for Poverty Research.
    3. Campbell, Nigel, 1999. "The decline of employment among older people in Britain," LSE Research Online Documents on Economics 6501, London School of Economics and Political Science, LSE Library.
    4. Nigel Campbell, 1999. "The Decline of Employment Among Older People in Britain," CASE Papers 019, Centre for Analysis of Social Exclusion, LSE.
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    1. Afridi, Farzana & Dinkelman, Taryn & Mahajan, Kanika, 2016. "Why Are Fewer Married Women Joining the Work Force in India? A Decomposition Analysis over Two Decades," IZA Discussion Papers 9722, Institute of Labor Economics (IZA).
    2. Farzana Afridi & Taryn Dinkelman & Kanika Mahajan, 2018. "Why are fewer married women joining the work force in rural India? A decomposition analysis over two decades," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(3), pages 783-818, July.

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