Figure 1: real minimum wage, 2013 constant prices, purchasing power parity, US$, Australia, New Zealand, USA and UK
Source: OECD StatExtract.
Celebrating humanity's flourishing through the spread of capitalism and the rule of law
18 Jun 2015 Leave a comment
in economic history, labour economics, minimum wage, politics - Australia, politics - New Zealand, politics - USA Tags: Australia, British economy
Figure 1: real minimum wage, 2013 constant prices, purchasing power parity, US$, Australia, New Zealand, USA and UK
Source: OECD StatExtract.
18 Jun 2015 Leave a comment
in politics - New Zealand, Public Choice
If Colin Craig is deposed tomorrow as the leader of the Conservative Party of New Zealand, his party will fall apart and run as a rump at the next election. The tables below discuss what might happen to the party vote that drifts back to the major parties with the collapse of the Conservative Party.
Table 1: 2014 general election status quo
| Party name | Party Votes won | Party seat entitlement | No. of electorate seats won | No. of list MPs | Total MPs | % of MPs | |
| ACT New Zealand | 0.69% | 1 | 1 | 0 | 1 | 0.83% | |
| Green Party | 10.70% | 14 | 0 | 14 | 14 | 11.57% | |
| Labour Party | 25.13% | 32 | 27 | 5 | 32 | 26.45% | |
| Māori Party | 1.32% | 2 | 1 | 1 | 2 | 1.65% | |
| National Party | 47.04% | 60 | 41 | 19 | 60 | 49.59% | |
| New Zealand First Party | 8.66% | 11 | 0 | 11 | 11 | 9.09% | |
| United Future | 0.22% | 0 | 1 | 0 | 1 | * | 0.83% |
| Totals | 93.76% | 120 | 71 | 50 | 121 | 100.00% |
As the table 2 below shows, if about 2% of the party vote of the Conservative party drifts back to National, and 2/10th of a percentage point of that party vote of the Conservative Party going to United Future, the National Party not only wins a majority in Parliament, the overhang in Parliament disappears as well. The United Future Party seat comes off the representation of the Labour Party if its party vote exceeds 0.4%. There are no other changes of note.
Table 2: 2014 general election with Conservative party rump
| Party name | Party Votes won | Party seat entitlement | No. of electorate seats won | No. of list MPs | Total MPs | % of MPs | |
| ACT New Zealand | 0.89% | 1 | 1 | 0 | 1 | 0.83% | |
| Green Party | 10.70% | 13 | 0 | 13 | 13 | 10.83% | |
| Labour Party | 25.43% | 31 | 27 | 4 | 31 | 25.83% | |
| Māori Party | 1.32% | 2 | 1 | 1 | 2 | 1.67% | |
| National Party | 49.07% | 61 | 41 | 20 | 61 | 50.83% | |
| New Zealand First Party | 9.16% | 11 | 0 | 11 | 11 | 9.17% | |
| United Future | 0.42% | 1 | 1 | 0 | 1 | 0.83% | |
| Totals | 96.99% | 120 | 71 | 49 | 120 | 100.00% |
The National Party almost won a majority in the last election so only a small amount of the Conservative Party’s party vote drifting back to it more so than the other parties can boost it to 61 votes and an absolute majority in its own right. Tomorrow is a big day for the future of New Zealand politics and the chances of the Left winning government any time soon.
18 Jun 2015 Leave a comment
in economics of education, gender, labour economics, labour supply, occupational choice, politics - Australia, politics - New Zealand, politics - USA, welfare reform Tags: single mothers
There's a clear increase in single-parent households for parents who haven’t gone to college: on.wsj.com/1B1Xeuq http://t.co/eW2fH8bX5O—
Real Time Economics (@WSJecon) May 17, 2015
17 Jun 2015 Leave a comment
in applied price theory, applied welfare economics, comparative institutional analysis, environmental economics, global warming, politics - Australia, politics - New Zealand, politics - USA, Public Choice, rentseeking Tags: cap and trade, carbon tax, carbon trading, climate alarmism, expressive voting, fossil fuel disinvestment, global warming, rational irrationality, Robert Stavins
16 Jun 2015 Leave a comment
in economics of education, human capital, labour economics, occupational choice, politics - Australia, politics - New Zealand, politics - USA Tags: economics of personality traits, gender gap, PISA, reversing gender gap
Boys’ dominance just about endures in maths: at age 15 they are, on average, the equivalent of three months’ schooling ahead of girls. In science the results are fairly even.
But in reading, where girls have been ahead for some time, a gulf has appeared. In all 64 countries and economies in the study, girls outperform boys. The average gap is equivalent to an extra year of schooling.
Figure 1: : Gender differences (boys – girls) in student performance in reading, mathematics and science in PISA 2012
Source: OECD family database.
16 Jun 2015 Leave a comment
in environmental economics, environmentalism, health economics, politics - Australia, politics - New Zealand, politics - USA Tags: agricultural economics, food snobs, organic farming
Yield of organic row crops as percentage of conventional
ganaderiayagro.blogspot.com/2015/05/organi… http://t.co/pjdbNEhvSH—
C. S. Prakash (@AgBioWorld) June 01, 2015
Why organic food costs more? -relative yield vs. conventional
ganaderiayagro.blogspot.com/2015/05/organi… http://t.co/xWcQiJoZ6K—
C. S. Prakash (@AgBioWorld) June 01, 2015
15 Jun 2015 Leave a comment
in health economics, labour economics, politics - Australia, politics - New Zealand, politics - USA, population economics Tags: ageing society, healthy life expectancy, life expectancy, The Great Escape
Figure 1: life expectancy and healthy life expectancy of women, Anglo-Saxon countries, 2010
Source: OECD family database.
Figure 2: life expectancy and healthy life expectancy of men, Anglo-Saxon countries, 2010
Source: OECD family database
14 Jun 2015 Leave a comment
in constitutional political economy, economics of crime, politics - New Zealand, Public Choice Tags: advance directives, Blackstone's ratio, Citizen initiated referendum, death with dignity, direct democracy, euthanasia, referendums, representative democracy, right to life, rule of law, William Blackstone
A New Zealand First MP along with his populist leader have proposed that the morally tricky question of euthanasia be addressed in New Zealand by a referendum rather than by a vote on a private member’s bill in Parliament.
Although about 80% of the public support euthanasia when asked about it in principle, when the 120 members in New Zealand Parliament elected by proportional representation are asked to vote on it in practice with procedures for safeguards, be last time this was tried in 2003 the Bill failed by three votes. The reason why it failed to pass was a substantial number of MPs who voted against the bill was reservations about abuse.
A badly drafted bill may offer insufficient assurances to some MPs about preventing abuse and ensuring people who are depressed are not offered options that are not in their best interests.
Others have moral or religious objections. The religious objections were summarised by Blackstone, in his Commentaries on the Laws of England, where he wrote that suicide was also a spiritual offence:
…in evading the prerogative of the Almighty, and rushing into his immediate presence uncalled for
If a referendum was to fail, that would make our morally timid MPs even more timid about ever passing a bill on euthanasia.

There is a considerable risk that a referendum on euthanasia will fail because people don’t know exactly what they are voting for. Because of that they will listen to those who opposed euthanasia who will point to the risk of abuse. A referendum strengthens the hands of those that oppose euthanasia. They can play to the lack of detail on what exactly is to be approved.
Many people have very strong views on exactly when and when not euthanasia is permissible because of their views about the sanctity of life and the risk of abuse. The recent High Court judgement on an unsuccessful application are an exception to the criminal law on assisted suicide said that:
The sanctity of human life principle underpins the criminal law relating to culpable homicide. It was said by Blackstone to be the first rule of English law.
When making an exception to the first rule of law, people want to know exactly what they are voting for and exactly what safeguards apply the proposed exceptions. A Referendum does not offer that indispensable option. Writing on a Bill on end of life choice is legally and morally tricky.
Many Bills have failed such as recently in the Scottish Parliament and in 2003 in the New Zealand Parliament because they were badly drafted and were considered by many to offer insufficient protection of the vulnerable against abuse and melancholy.
Even when courts rule favourably on the matter, such as in Canada with its recent Supreme Court decision under its Bill of Rights, that court suspended its judgement upholding the right to euthanasia for 12 month so that the Canadian Parliament could work out the ever so vital details by passing a Bill. As the Supreme Court of United Kingdom recently ruled:
… unless the court can be satisfied that any exception to the subsection can be operated in such a way as to generate an acceptably small risk that assistance will be afforded to those vulnerable to pressure to seek to commit suicide, it cannot conclude that the absolute prohibition in the subsection is disproportionate to its legitimate aim.
That is the essence of reservations about end of life choice. Blackstone’s ratio applies to standards of proof in criminal proceedings: it is better that 10 guilty go free than one innocent suffer.
Those with reservations about end of life choice have the same concerns that motivated Blackstone’s ratio. Their reservations are focused on few cases of abuse not justifying the benefits of going gently into that good night by making exceptions from an absolute prohibition under the criminal law against assisted suicide for the terminally ill despite they being of sound mind and independent judgement.

14 Jun 2015 Leave a comment
in discrimination, economics of education, gender, human capital, labour economics, labour supply, occupational choice, politics - Australia, politics - New Zealand, politics - USA Tags: Australia, British economy, Canada, College premium, education premium, gender wage gap, Ireland
Figure 1: % population who have attained at least tertiary education, age 25 – 34 by gender (2012)
Source: OECD family database.
Figure 2 shows that the stark reversing of the gender gap in educational attainment shown in figure 1 was somewhat more recent in the US, UK and to a lesser extent in Ireland and Australia. In the UK and USA, educational attainment by gender was pretty equal for the earlier generation of graduates as compared to today’s 25 to 34-year-olds. The reversing of the gender gap in educational attainment dates back several decades in Canada and New Zealand.
Figure 2: % population who have attained at least tertiary education, age 45 – 54 by gender (2012)
Source: OECD family database.
13 Jun 2015 Leave a comment
in discrimination, gender, human capital, labour economics, labour supply, occupational choice, politics - Australia, politics - New Zealand, politics - USA, poverty and inequality Tags: asymmetric marriage premium, Australia, British economy, Canada, gender wage gap, Ireland, labour demographics, maternal labour supply
In another blow for the inherent inequality of bargaining power between workers and employers, and for the patriarchy, the wage gap is larger for tertiary educated female full-time workers aged 35-44 than it is for female full-time workers who just finished high school.
Figure 1: gender wage gap for mean full-time, full-year earnings for tertiary educated workers aged 35 – 44, 2012
Source: OECD family database.
To add insult to injury, the gender wage gap further tertiary educated female workers is quite large in the USA but quite small for high school graduates.
Figure 2: gender wage gap for mean full-time, full-year earnings for below upper secondary educated workers aged 35 – 44, 2012
Source: OECD family database.
Canada seems to be a bit of a patriarchal hellhole while New Zealand does pretty well in gender wage gaps.
The gender gap in figure 1 and in figure 2 are unadjusted and calculated as the difference between mean average annual full-time, full-year earnings of men and of women as a percentage of men’s earnings.
13 Jun 2015 Leave a comment
in applied price theory, applied welfare economics, economic growth, economic history, health and safety, income redistribution, industrial organisation, labour economics, labour supply, macroeconomics, Milton Friedman, occupational choice, politics - Australia, politics - New Zealand, politics - USA, Public Choice, rentseeking, unions Tags: competition and monopoly, The Great Enrichment, union power, union wage premium
12 Jun 2015 Leave a comment
in discrimination, gender, human capital, labour economics, labour supply, occupational choice, politics - Australia, politics - New Zealand, politics - USA Tags: Australia, British economy, Canada, gender wage gap, Ireland
If there is an inherent inequality of bargaining power between workers and employers, as we are so frequently lectured by those in the self appointed know, why is the gender wage gap so small at the bottom of the earnings distribution?
Figure 1: % Gender gap in full-time earnings at the bottom decile of earnings distribution, 2012
Source: OECD family database
Figure 2: % Gender gap in full-time earnings at the median decile of earnings distribution, 2012
Source: OECD family database
Figure 3: % Gender gap in full-time earnings at the top decile of earnings distribution, 2012
Source: OECD family database
The gender gaps are unadjusted, and are calculated as the difference between the earnings of men and women for their respective earnings percentile.
12 Jun 2015 Leave a comment
in politics - New Zealand, urban economics Tags: Auckland, housing affordability, land supply, RMA, zoning
New QV figures show Auckland house prices are up a massive 16.1% on last year, now estimated to reach $1m by Aug '16. http://t.co/DwAU79ozCy—
New Zealand Labour (@nzlabour) June 09, 2015
12 Jun 2015 Leave a comment
in liberalism, politics - Australia, politics - New Zealand, politics - USA Tags: expressive voting, Green Left, Leftover Left, political correctness, rational irrationality, Twitter left
@KayHymowitz i find it passing strange that counter-culturals left like Winner now are the most reactionary.. http://t.co/hj2MEc4Buu—
Old Whig (@aClassicLiberal) April 06, 2015
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