Has there been any labour market deregulation ever in the UK, Australia or New Zealand?

Major deregulations and re-regulations of the labour market in Australia and New Zealand did not move the employment protection inducts around that much in figure 1. All is been quiet on the labour market regulation front of the UK pretty much since the index was started.

Figure 1: OECD employment protection index (EPI), strictness of employment protection – individual and collective dismissals, USA, UK, Australia and New Zealand, 1990 – 2013

image

Source: OECD StatExtract.

The Work Choices legislation in Australia in 2006 was looked upon by the OECD as a somewhat minor deregulation not much more in scale than the deregulation introduced in 2008 with the election of the National Party led government.

Nobody told the unions that.

Taxes on minimum wage earners across the OECD area

The Myth that ‘Buying Local’ Is Good for the Local Economy

Video

Tax revenues as a percentage of GDP, selected OECD member countries

Poverty traps: would a minimum wage increase take-home pay?

John Howard’s birthday – what I admire most about him

What I admire most about John Howard was his decision to intervene in East Timor to stop massacres, which were a by-product of succession struggles within TNI. Howard didn’t have to do that. He didn’t.

If there ever was a prime directive in Australian national security policy, more so than have a great and powerful friend (first the UK, than the USA, dumping Britain like a stone in 1941 when a better great and powerful friend became available), it’s never put Australian military forces in a position risking an exchange of fire with TNI.

That did happen during the East Timor intervention. There were armed stand-offs at roadblocks between the Australian Army and TNI. Platoon leaders in the Australian Army had to keep their cool with guns drawn on both sides otherwise it would be a real shooting war that could spiral out of control.

That is why there is a genuine risk of major war not from accidents in the military machine but through a diplomatic process of commitment and escalation that is itself unpredictable. Schelling also argues that nations, like people, are continually engaged in demonstrations of resolve, tests of nerve, and explorations for understandings and many misunderstandings.

In Schelling’s view, many wars including World War 1 were products of mutual alarm and unpredictable tests of will. When people discuss the futility of World War 1, they under rate the role of unintended consequences and the dark side of human rationality in situations involving collective action.

Indonesia and its politically ambitious and corrupt military wing are next door to Australia forever. A pragmatic approach is a necessity of survival along such a volatile border.

That’s actually why Whitlam did what he did, and sat on his hands over the East Timor massacres in 1975. Australia had no credible capability of intervening, particularly against a country with such a large military and unstable politics. In 1975, the Indonesian military most certainly would have shot back.

Hourly minimum wages before and after taxes, USA, UK, Canada, Australia, New Zealand and Japan

Figure 1: Hourly minimum wage before and after taxes, 2013, US dollars at purchasing power parities, single-person household

image

Source: OECD Focus on Minimum Wages after the crisis (2015).

Who has heavily guarded borders?

Average effective retirement ages by gender, Australia and New Zealand, 1970 – 2012

Figures 1 and 2 shows a sharp increase in the average effective retirement age for men and women in both Australia and New Zealand between 1970 and 1990. After that, retirement ages for men in both countries stabilised for about a decade. effective retirement age than Australia.

Figure 1: average effective retirement age for men, Australia and New Zealand, 1970 – 2012, (five-year average)

image

Source: OECD Pensions at a Glance.

Interestingly, in the 1970s and 1980s, New Zealand had an old-age pension scheme, known as New Zealand Superannuation, whose eligibility age was lowered from 65 to 60 in one shot in 1975. This old-age pension in New Zealand had no income test or assets test, but there was for a time a small surcharge on any income of pensioners. Nonetheless, New Zealand had a higher effective retirement age than in Australia where the old-age pension eligibility age is 65 with strict income and assets tests.

Figure 2: average effective retirement age for women, Australia and New Zealand, 1970 – 2012, (five-year average)

 image

Source: OECD Pensions at a Glance.

Figure 1 and figure 2 also shows that the sharp increase in effective retirement ages in New Zealand for both men and women after the eligibility age for New Zealand’s old-age pension was increased from 60 to 65 over 10 years.

Figures 1 and 2 also show the gradual increase in effective retirement ages for Australian men and women from the end of the 1990s.

The price of 100% wind power in Denmark

The Rahn curve explained

In honour of the moon landing

Image

Low pay across the OECD

The average worker doesn’t pay much in income taxes in New Zealand. Then who does?

via A Comparison of the Tax Burden on Labor in the OECD | Tax Foundation.

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