RDP 1999-01: The Phillips Curve in Australia Appendix E: Data Description and Sources

All data are quarterly and seasonally adjusted, unless otherwise indicated. All constant price data are expressed in 1989–90 prices and are contained in the Australian Bureau of Statistics (ABS) publications issued before implementation of chain-volume measures.

Unemployment rate

Number of unemployed people as a proportion of the total labour force (Labour Force, ABS Cat. No. 6203.0, Table 2).

Prior to 1978:Q3, labour force data were obtained from the National Income Forecasting (NIF) database, ABS Cat. No. 1342.0, Table 7.

Underlying consumer prices

Treasury underlying consumer price index (Consumer Price Index, ABS Cat. No. 6401.0, Table 10).

Prior to 1971:Q1, spliced with headline (all items) consumer price index (Consumer Price Index, ABS Cat. No. 6401.0, Table 10).

Tariff-adjusted import prices

Implicit price deflator for endogenous goods imports. Endogenous goods imports are defined as total merchandise imports excluding exogenous imports (civil aircraft, fuels and lubricants, ADP equipment and parts).

Current and constant price series for merchandise imports less exogenous items were taken from Balance of Payments, ABS Cat. No. 5302.0, Tables 13 and 15.

From September 1981, current and constant price series for ADP equipment and parts were taken from Balance of Payments, ABS Cat. No. 5302.0, Tables 13 and 15. Between September 1969 and June 1981, these are unpublished data provided by the ABS.

Prior to 1969:Q3, the implicit price deflator for endogenous goods imports was spliced with a price index for imported ‘endogenous goods’ taken from the NIF database, ABS Cat. No. 1342.0, Table 8.

The tariff rate is the ratio of customs duty collected on international trade (Reserve Bank of Australia Bulletin, Table E.1) to the value of total merchandise imports (Balance of Payments, ABS Cat. No. 5302.0, Table 13).

Unit labour costs

Unit labour costs per person. Equal to wages per person divided by non-farm productivity per person.

From 1981:Q3, wages per person are average weekly ordinary-time earnings (AWOTE) per full-time adult (Average Weekly Earnings, ABS Cat. No. 6302.0, Table 2). Before 1981:Q3, wages per person are average weekly earnings (AWE) per full-time adult (Average Weekly Earnings, ABS Cat. No. 6302.0, Table 2).

Non-farm productivity per person is equal to the ratio of constant price non-farm GDP(A) (National Income, Expenditure and Product, ABS Cat. No. 5206.0, Table 48) to total non-farm employment (NIF database, ABS Cat. No. 1342.0, Table 7).

Inflation expectations

Measure of inflation expectations used by Debelle and Vickery (1997). This was obtained by subtracting a measure of the equilibrium world real interest rate from the nominal 10-year bond yield. The equilibrium world real interest rate depends on the outstanding stock of world government debt. See Debelle and Vickery for details.

Overtime

Average number of overtime hours worked per employee (NIF database, ABS Cat. No. 1342.0, Table 11).

Replacement ratio

Unemployment benefits (per single adult male 21 years or older with no dependents) as a proportion of after tax male average weekly earnings.

Unemployment benefits are unpublished data provided by the ABS. Average weekly earnings (before tax) per single adult male were taken from Average Weekly Earnings, ABS Cat. No. 6302.0, Table 2.

The implied average tax rate on individuals was calculated as the ratio of net tax instalments paid by individuals (NIF database, ABS Cat. No. 1342.0, Table 12) to total wages, salaries and supplements (National Income, Expenditure and Product, ABS Cat. No. 5206.0, Table 66).

Inside unemployment rate

Total number of unemployed people with at least 2 weeks of full time work in the past 2 years taken as a proportion of the sum of total employment plus insider unemployment (Labour Force, ABS Cat. No. 6203.0, Table 30).

Prior to 1980:Q1, inside unemployment was constructed using the methodology of Cockerell and Russell (1995). This involves splicing the unemployment gap ratio (the difference between actual unemployment and unemployment ‘smoothed’ by a Hodrick-Prescott filter, divided by smoothed unemployment) onto the existing inside unemployment rate series. See Cockerell and Russell for more details.

Long-term unemployment rate

Total number of people unemployed for 52 weeks or more as a proportion of the total labour force (Labour Force, ABS Cat. No. 6203.0, Table 26).

Before 1978:Q3, the definition of long-term unemployment was different. Where available, we have used data on the number of people unemployed for the longest recorded duration to represent long-term unemployment. For example, between 1975 and 1978, long-term unemployment is defined as 26 weeks or more. Before 1978, however, long-term unemployment is defined as 13 weeks or more. Data on long-term unemployment (as defined) prior to 1978:Q1 was obtained from Labour Force Experience, ABS Cat. No. 6206.0, Table 19.