Claiming back workers from the “”lucky”” country

Throughout the course of 2014, the number of peoplecrossing the Tasman to live and work in New Zealand rose 19% from 2013. Prompting this change was a shift in the relative employment prospects betweeneach of the two countries.  This article looks into Australian labour marketdata to get a better idea of where employment is shrinking in Australia, andthus what types of jobseekers are likely to end up in New Zealand.

Taking on the world with free trade

Over the year to September 2014, exports accounted for 29%of New Zealand’s economic activity.  As a small exporting nation, New Zealandis generally located a long way from the biggest population bases, and istrying to compete in a world where markets are biased towards domesticproducers or other countries with longstanding trade arrangements.  As aresult, New Zealand has sought both bilateral and multilateral trade agreementsas a way to crack overseas markets. 

A slow unwinding death for inheritance?

Inheritance has long existed as a power-transferring mechanism for the few and an intergenerational social security blanket for the masses.  However, increased longevity has altered the mechanics of inheritance, stretching the system across more than one generation.  As a result, the inheritance cycle may not be as socially advantageous as it once was.  This article proposes that, even if inheritance no longer serves the same purpose, we have developed alternative practices of providing intergenerational support.  Furthermore, and regardless of whether it is needed, the tendency of people to build wealth over their lifetimes suggests that inheritance is inevitable.

Industry effects of minimum wage increases

In 2012, the Living Wage Aotearoa NewZealand movement[1] commissioned a report on a livingwage.  As this movement gathered momentum, there has been a social push forminimum wages hikes – something a number of government parties brought intotheir pre-election policies.  This article will look into the industries mostaffected by minimum wage increases and analyse likely business responses overthe short and medium term.

Why high-LVR lending refuses to grow

It has been nine months since the Reserve Bank’s most recent policy child was brought into the world and, over this period, high loan-to-value residential lending has fallen by almost 80%.  The limits for high-LVR mortgage lending were implemented to strengthen the financial system against housing market shocks and ease house price inflation.  However, the restrictions have had a far greater effect on low deposit home loan issuances than perhaps initially intended.  This article delves into why high-LVR loans, which once made up 25% of residential mortgage lending from banks, have reduced to levels far below that which the Reserve Bank policy allows. 

Why do we study?

Education is often seen as an investment, but do students ever crunch the numbers on perhaps one of the biggest investments in their life? Some courses of study never break even, yet their popularity indicates that study means more to people than a ribbon wrapped ticket to higher salaries – education is also a consumption good.

Trading doctors for cash

Over the past fifty years Cuba has mass produced healthcare workers for export and in doing so, has created a dynamic comparative advantage worth billions. Although such an advantage is valuable, medical internationalism comes at the cost of efficiency losses and restrictions on personal freedoms needed to keep doctors tied to Cuba.

The value of GDP

TheChristchurch rebuild is keeping tradesmen busy, Northland’s storm clouds gaveroad workers trees to clear and roads to fix, and if you decided to playcricket against your neighbour’s front window, someone will soon be ringing a glazier.On the face of it, all this work increases GDP.