Utopia, you are standing in it!

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Paradoxically, the main way of using financial incentives to increase net labour supply of beneficiaries and move more off the benefit is to toughen the benefit abatement regime. This increase in the abatement rates on welfare benefits for earned income moves more off the benefit and moves more into full-time employment but still with an …

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To continue with my theme in my previous three blogs that zero hours contracts aren’t supposed to exist, a leading explanation for the hesitancy of employers to agree to part-time hours is team production (Hutchens and Grace-Martin 2004, 2006; Hutchens 2010). Employers may want their employees to work a minimum number of working hours because …

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Figure 1: National labour force projections by age group, 2006-2041 Source: Statistics New Zealand, cyclical migration scenario Not that many years time, about 2035, there will be almost as many workers as there are young workers – those between 15 and 24. About 400,000 workers in each age bracket. Not that long ago all, in …

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Lindsay Mitchell has a nice blog today on the views of the new Labour Party spokesman on social development – the New Zealand ministerial portfolio covering social security and social welfare Carmen Sepuloni disagrees with National Party’s policy of requiring solo mothers to look for work. She believed there should be support for sole parents to return …

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A good way to start the second part of my discussion of zero hours contracts is to focus on the economic rationale as to why they should not exist because of the fixed costs of employment. Under zero-hours contracts, employees agree to be available for work as and when it is required. The fact that …

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One of my puzzles about immigration is the claim that they take jobs from natives. This is the lump of labour fallacy: that there is a fixed amount of work to be done in the world, so any increase in the amount each worker can produce reduces the number of available jobs. Immigration is population …

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Unions say New Zealand employers are following trends overseas and adopting zero hour contracts: workers have to be available for work, but have no hours guaranteed. Unite Union national director Mike Treen said: McDonald’s, KFC, Pizza Hut, Starbucks, Burger King, Wendy’s – all of the contracts have no minimum hours, and so people can be …

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