Graham Squires, Don Webber, Hai Hong Trinh and Arshad Javed
The purpose of this paper is to examine the relationship between house price affordability (HPA) and rental price affordability (RPA) in New Zealand. The cointegration of HPA and…
Abstract
Purpose
The purpose of this paper is to examine the relationship between house price affordability (HPA) and rental price affordability (RPA) in New Zealand. The cointegration of HPA and RPA is of particular focus given rising house prices and rising rents.
Design/methodology/approach
The study examines the lead-lad correlation between HPA and RPA. The method uses a generalised least square technique and the development of an ordinary least squares model.
Findings
The study shows that there is an existence of cointegration and unidirectional statistical causality effects between HPA and RPA across 11 regions in New Zealand. Furthermore, Auckland, Wellington and Canterbury are the three regions in which the results detect the most extreme effects amongst HPA and RPA compared to other places in the country. Extended empirical work shows interesting results that there are lead-lag effects of HPA and RPA on each other and on mortgage rates at the national scale. These effects are consistent for both methods but are changed at individual lead-lag variables and amongst different regions.
Originality/value
The study empirically provides useful insight for both academia and practitioners. Particularly in examining the long-run effects, cointegration and forecasting of the volatile interactions between HPA and RPA.
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Keywords
Gary Bosworth, Polly Chapman, Robert Newbery, Artur Steiner and Don J. Webber
Nikolaos Apostolopoulos, Ilias Makris, Sotiris Apostolopoulos and Panagiotis Liargovas
– The purpose of this paper is to empirically examine the role of perceived ability to participate in decision making in the workplace, with respect to job satisfaction.
Abstract
Purpose
The purpose of this paper is to empirically examine the role of perceived ability to participate in decision making in the workplace, with respect to job satisfaction.
Design/methodology/approach
Data from the fourth wave of the European Value Survey, is utilised, and a bivariate probit model is employed to account for unobserved heterogeneity.
Findings
Empirical analysis comparing univariate and bivariate probit models reveals that the results from the former are negatively biased; potentially indicating that prior research may have underestimated the impact of participative decision making (PDM) on job satisfaction. Additionally, it appears clear that the magnitude of the marginal effects for both socio-demographic and work characteristics do not differ when comparing workers with above and below average participation. More importantly, the authors find a substantial negative marginal effect of below average participation on job satisfaction (close to three times the magnitude of the next largest marginal effect estimated in the model), indicating how crucial it is for employers to actively pursue programmes that enhance PDM.
Originality/value
This study contributes to the growing literature aimed at understanding drivers of satisfaction in the workplace. Adding to the scant empirical investigation of the influence of PDM on job satisfaction, the authors find strong evidence of a direct and positive impact, which is further amplified after controlling for unobserved heterogeneity.
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The purpose of this paper is to investigate area-level labour market dynamics from a spatial perspective. This analysis is aimed at better understanding what socio-economic actors…
Abstract
Purpose
The purpose of this paper is to investigate area-level labour market dynamics from a spatial perspective. This analysis is aimed at better understanding what socio-economic actors are associated with shifts in unemployment rates across a major metropolitan city.
Design/methodology/approach
Based on two waves of New Zealand census data, this paper combines a seemingly unrelated regression approach (allowing for relaxation of the assumption that residuals from models of different employment states are unrelated) with a spatial lag model.
Findings
The key socio-economic drivers associated with intra-city employment dynamics were vehicle access, dependency rates and educational attainment. Importantly, the identification of spatial autocorrelation with respect to employment status patterns within this major New Zealand city motivates a case for heterogeneous employment policies across the city.
Originality/value
This research improves the understanding of changes in labour market status rates within a city region. This is done by inclusion of two important considerations: a spatial perspective to labour market dynamics at an intra-city level; and formally modelling the interdependence across the four potential labour market outcomes (being full-time, part-time, unemployed or out of the labour force). Overall, there was clear empirical support for the need to include spatial considerations when using targeted policy to help lift areas out of unemployment.