Skills, Economic Crises and the Labour Market
Date
Supervisor
Item type
Journal Article
Degree name
Journal Title
Journal ISSN
Volume Title
Publisher
Wiley
Abstract
Do higher skills help mitigate the negative impact of economic crises? We study the effect of two major economic setbacks—the Global Financial Crisis (GFC) in 2007–09 and the COVID-19 period from early 2020—on wage progression for New Zealanders with different skill levels. For our analysis, we link the PIAAC survey data on literacy and numeracy skills with the Inland Revenue's tax records that document the entire workforce's monthly labour market information. During the GFC, the adverse impact of the economic shock on wage progression appears to be significantly lower for the higher-skilled population. Moreover, those in the low-skilled group who changed employers during the GFC experienced the largest wage drop. However, during the more recent period of COVID-19 restrictions, we find little evidence of skill-based differences in wage progression. In some years, low-skilled workers even experienced slightly faster wage growth than high-skilled workers.Description
Source
Economic Record, ISSN: 0013-0249 (Print); 1475-4932 (Online), Wiley. doi: 10.1111/1475-4932.12891
Publisher's version
Rights statement
© 2025 The Author(s). Economic Record published by John Wiley & Sons Australia, Ltd on behalf of Economic Society of Australia. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.