Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/262203
Authors: 
Dasgupta, Kabir
Plum, Alexander
Year of Publication: 
2022
Series/Report no.: 
Economics Working Paper Series No. 2022/01
Publisher: 
Auckland University of Technology (AUT), Faculty of Business, Economics and Law, Auckland
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 lockdown in 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 labor market information. During the GFC, the adverse impact of the economic shock on wage progression appears to be significantly lower for the higherskilled population. Moreover, the low skilled group experienced the largest wage drop when changing their employer during the GFC crisis. However, during the recent pandemic-induced lockdown period, we cannot detect differences in wage progression across skill levels.
Subjects: 
Skills
Economic Crises
Wage progression
PIAAC
administrative data
JEL: 
J24
J31
O12
Document Type: 
Working Paper

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