Influences on Indigenous Labour Market Outcomes

This staff working paper (by Savvas, Boulton, and Jepson) examines factors that potentially influence Indigenous labour market outcomes (LMOs). It uses regression analysis, and builds on the simple model that was presented in the ‘Overcoming Indigenous Disadvantage: Key Indicators (OID) 2011’, by including additional variables. The analysis uses the 2008 National Aboriginal and Torres Strait Islander Social Survey (NATSISS), a rich source of information on the characteristics of Indigenous people, including data on LMOs and many factors that might contribute to them. The analysis does not make comparisons with non-Indigenous Australians. Empirical analysis can be used to test and quantify relationships that have been developed in theory. For example, policy makers might be interested in those factors that have the greatest association with Indigenous people’s decisions to participate in the labour market and their success in obtaining a job. The purpose of this analysis is to quantify those associations. The aim is to add variables that represent social and cultural factors to the basic model in the 2011 OID Report to obtain insight into the effects of unobserved personal characteristics, and whether the way Indigenous people engage with their community and culture affects their LMOs. The views expressed in this paper are those of the staff involved and do not necessarily reflect those of the Productivity Commission.