Lixin Cai

Lixin Cai
University of Adelaide · Future of Employment and Skills Reserach Centre

PhD in Economics

About

59
Publications
9,824
Reads
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1,014
Citations
Additional affiliations
March 2018 - May 2021
University of Adelaide
Position
  • Professor
March 2014 - March 2019
Flinders University
Position
  • Professor (Associate)
September 2009 - May 2021
Australian Government Department of Jobs and Small Business
Position
  • Managing Director

Publications

Publications (59)
Article
Full-text available
Purpose The purpose of this study is to examine the effects of health on wages of Australian workers, with a focus on gender differences and the role of macroeconomic conditions in the effects. Design/methodology/approach The first 15 waves of the Household, Income and Labour Dynamics in Australia survey are used to estimate a wage model that acco...
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A recent study by Fok, Scutella and Wilkins (Oxf Bull Econ Stat 77: 872-896, 2015) concludes that there is a low-pay no-pay cycle for males and females in the Australian labour market. This note re-estimates the model of that study using the same data. It is found that Fok, Scutella and Wilkins' (2015) conclusion is based on a model specification t...
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Using the Understanding Society data, this study estimates the effects of health on the extensive and intensive margins of the labour supply of the UK workers. Earlier studies focus on a binary measure of labour force participation or early retirement. The results show that health affects both the margins of labour supply for both males and females...
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Purpose The purpose of this study is to enhance understanding labour supply dynamics of the UK workers by examining whether and to what extent there is state dependence in the labour supply at both the extensive and intensive margins. Design/methodology/approach A dynamic two-tiered Tobit model is applied to the first seven waves of Understanding...
Article
Purpose The purpose of this paper is to enhance the understanding of labour force participation behaviour of married Australian women, with a focus on identifying the sources of observed inter-temporal labour force participation persistence. Design/methodology/approach A dynamic Probit model is applied to the Household, Income and Labour Dynamic...
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Using 18 waves of the British Household Panel Study, this paper examines state-dependence and stepping stone effects of low pay. The results show that both state-dependence and stepping stone effects of low pay are present. However, there is no evidence to support a low-pay no-pay cycle. The introduction of the national minimum wage does not appear...
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Using the first 13 waves of the Household, Income and Labour Dynamics in Australia (HILDA) Survey, this study investigates the determinants of labour supply of married Australian women, with a focus on whether and to what extent there is state dependence in their labour supply. It is found that both observed and unobserved individual heterogeneity...
Article
Full-text available
Purpose – The purpose of this paper is to enhance understanding low pay dynamics of Australian employees, with a focus on the determination of low pay duration. Design/methodology/approach – The study draws on a representative longitudinal survey of Australian households to provide empirical findings from both descriptive analysis and econometric...
Article
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Purpose – The purpose of this paper is to examine the wage differentials along the entire distribution between immigrants and the Australian-born. Design/methodology/approach – Using the Household, Income and Labour Dynamics in Australia (HILDA) Survey, the authors apply a semi-parametric method (DiNardo et al., 1996) to decompose the distribut...
Article
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We investigate the impact of health on working hours. This is in recognition of the fact that leaving the labour market because of persistently low levels of health status, or because of new health shocks, is only one of the possible responses open to employees. We use the first six waves of the Household, Income and Labour Dynamics in Australia (H...
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This study examines the stepping stone effect of part-time employment for working-age Australians. Using the Household, Income and Labour Dynamics in Australia (HILDA) Survey, the study finds that part-time employment increases the probability of future full-time employment by approximately nine percentage points for males and approximately six per...
Article
Wages are higher in China than in Vietnam. Using data from the Chinese Household Income Project 2002 and the Vietnam Household Living Standards Survey 2002, this paper aims to understand the sources of the wage differences between the two countries. The decomposition results show that for men (women), differences in returns to observed wage determi...
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Full-text available
Using the HILDA Survey, this study examines state-dependence and stepping stone effects of low pay in Australia. The results show that both state-dependence and stepping stone effects of low pay are present after observed and unobserved individual heterogeneity is accounted for. The results also show that, other things being equal, people who are o...
Article
This study examines the wage differentials along the entire distribution between immigrants and the Australian-born. The results show that the productivity characteristics and the returns to the characteristics reinforce each other for immigrants from English-speaking countries, putting them in a favourable position relative to the native-born. Mal...
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The positive relationship between employer size and wages is a ubiquitous feature of advanced industrialised economies. The purpose of the present study is to clarify the nature of the employer size-wage effect in Australia by determining the extent to which it can be explained by observed and unobserved quality differences, including difference in...
Article
Previous research on public–private wage differentials in Australia has focused on the mean of the conditional wage distribution. Using six waves of the Household, Income and Labour Dynamics in Australia survey, this study employs quantile regressions to examine whether the sectoral wage effect varies along the wage distribution. For females, publi...
Article
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This study on the labour supply decisions of married women by Dr Lixin Cai is the first to be published under the Commission’s Visiting Researcher Papers series. This program supports research that is relevant to the Commission’s own work program and provides an opportunity for Commission staff to engage with academics and build their knowledge of...
Article
Full-text available
A concern when estimating the effect of health on labour supply is that health might be endogenous, and in particular that people might use poor health to justify non-participation. This would result in the effect of health being overestimated if health were treated as exogenous. The paper employs a simultaneous equation model to explore the relati...
Article
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Three methods can be used to estimate simultaneous equation models with latent dependent variables: two-stage, minimum distance (MD) and full-information maximum likelihood. Theoretically all the three methods provide asymptotically consistent estimates, but the performance of these estimators in finite samples cannot be determined in theory. This...
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This study examines the effects of general health and chronic diseases on the labour force participation of older working-age Australians. To account for potential endogeneity of health status, a simultaneous equation model is estimated and chronic diseases are used as instrumental variables. The effects of chronic diseases on labour force particip...
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By estimating a simultaneous equation model on panel data, this study examines whether self-reported disability status is endogenous to labour force status. While for males the exogeneity of disability status cannot be rejected, it is rejected for females. However, for both males and females the results reject the justification hypothesis on self-r...
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Using the Household, Income and Labour Dynamics in Australia (HILDA) Survey, this study examines the joint dynamics of health and poverty in Australian families. Taking advantage of panel data, the modelling approach used in this study allows a better estimation of the causal relationship between health and poverty. The results indicate that the ca...
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Using data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, our research indicates that unobserved heterogeneity substantially biases cross-sectional estimates of union wage effects upward for both males and females. Estimates of the union wage premium for male workers between the ages of 25 and 64 fall from 8.7 percent t...
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Using the Household, Income and Labour Dynamics in Australia (HILDA) survey data, this study examines the effect of wealth, as measured by net worth, on health transitions of older Australians. By focusing on health transitions instead of health status itself, the study avoids potential endogeneity of wealth arising from the reverse effect of healt...
Article
This study uses quantile regression models to examine whether the union wage effect varies across the conditional wage distribution. Although for men it is evident that the union wage effect decreases when moving up the conditional wage distribution, the effect for women is relatively stable except at the extremities of the distribution. Overall, u...
Article
The aim of this paper is to analyse the work incentive effects of a change in the Australian tax and transfer system on lone parents in July 2000. To evaluate the effect of the total change only, microsimulation can be used; but for a subgroup of lone parents, a few components of this policy change can be analysed through two alternative approaches...
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This study uses administrative records for recipients of the Disability Support Pension (DSP) over the period 1995 to 2002 to investigate the extent and nature of exits from DSP, with particular emphasis on exits due to take up of employment. The analysis shows that, consistent with the long-term nature of the DSP payment, all exits in a given year...
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Given falling birth rates, ageing baby boomers approaching retirement age as well as a pension crisis in most advanced economies, understanding the characteristics of the labour supply function of the elderly have taken on a new significance. Even in developing countries, with labour surplus economies, this is a major issue as these poor countries...
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The trend of declining labour force participation by older working-age men, combined with an ageing population, has led many industrialised nations to develop policies encouraging older male workers to remain in the labour force. A better understanding of how an individual’s health influences the labour force participation decision among this group...
Article
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Previous research on union wage effects in Australia has focused on the central parts of the conditional wage distribution. This study uses quantile regression models to examine whether the union wage effect varies across the (conditional) wage distribution. The data draw upon the first four waves of the Household, Income and Labour Dynamics in Aus...
Article
Full-text available
A concern when estimating the effect of health on labour supply is that health might be endogenous, and in particular that people might use poor health to justify non-participation. This would result in the effect of health being overestimated if health were treated as exogenous. The paper employs a simultaneous equation model to explore the relati...
Article
Full-text available
As a form of human capital health like education determines individuals’ productivity and thus wage rates. While there are numerous overseas studies that examine the effect of health on wages, research on this issue using Australian data is scarce. This paper uses the Household, Income and Labour Dynamics in Australia (HILDA) survey to investigate...
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We use Centrelink payment records on Disability Support Pension (DSP) recipients over the period 1995 to 2002 to investigate individual transitions off payments. Our findings are consistent with the existence of a close correspondence between disability benefit receipt and labour market outcomes: entry to DSP via unemployment benefits is associated...
Article
Full-text available
This paper examines the effect of health on labour force participation using the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The potential endogeneity of health, especially self-assessed health, in the labour force participation equation is addressed by estimating the health equation and the labour force participation equatio...
Article
Full-text available
The paper examines the factors that determine the duration on the Disability Support Pension (DSP) program using administrative data. We estimate two models based on two competing assumptions: the first model takes the standard assumption in duration models that all recipients will eventually leave the program. The second one takes into account the...
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This paper investigates the use of sample reweighting, in a behavioural tax microsimulation model, to examine the implications for government taxes and expenditure of population ageing in Australia. First, a calibration approach to sample reweighting is described, producing new weights that achieve specified population totals for selected variables...
Article
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The aim of this paper is to analyse work incentive effects from a recent change in the Australian tax and transfer system on sole parents. Two approaches are used in the analysis: microsimulation and quasi-experimental evaluation. Both approaches examine the effects on the probability of employment and average working hours. The results from both a...
Article
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From the administrative data of the Australian Department of Family and Community Services it is found that a large proportion of Disability Support Pension (DSP) recipients transferred from unemployment benefits. Among those who transferred to DSP from unemployment benefits, a large proportion experienced multiple spells of income support receipt...
Article
Full-text available
This paper examines the effect of health on labour force participation using the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The potential endogeneity of health, especially self-assessed health, in the labour force participation equation is addressed by estimating the health equation and the labour force participation equatio...
Article
Full-text available
The paper examines the factors that determine the duration on the Disability Support Pension (DSP) program using administrative data. We estimate two models based on two competing assumptions: the first model takes the standard assumption in duration models that all recipients will eventually leave the program. The second one takes into account the...
Article
Full-text available
Although the overseas literature on the effect of health on labour force participation is extensive, especially in the US, the literature in an Australian context is scarce. This paper contributes to the understanding of this issue using the recently released Household, Income and Labour Dynamics in Australia (HILDA) Survey data. The potential endo...
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There has not been any major change in gender occupational segregation in recent years in Australia. The analyses presented in this paper, using data from the 1996 Census of Population and Housing, suggest that this occupational segregation stems more from gender differences in entry-level occupations than from gender differences in occupational mo...
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This publication contains research and analysis on a broad range of issues topical to Australia's social policy and its administration.
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This paper describes the process of updating the input data in the Melbourne Institute Tax and Transfer Simulator (MITTS) from the Survey of Income and Housing Costs (SIHC) to the Household, Income and Labour Dynamics in Australia (HILDA) wave 1, which was collected in 2001. The microsimulation model is updated in three steps. Firstly, we use the n...
Article
SUMMARY Lixin Cai was awarded a PhD in Economics from the Australian National University (ANU) in 2003, a Master of Economics of Development from the ANU in 1998, a Master of Art (in Applied Sociology) from the Renmin University of China in 1994, and a Bachelor of Education from the Henan University in China in 1991. Lixin has extensive work experi...
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Final report prepared for the Department of Family and Community Services December 2004 * We are grateful to the Department of Family and Community Services for funding this research and for providing comments on this report. The views expressed in this paper are those of the authors and do not represent the views of the Minister for Family and Com...
Article
Full-text available
Using the first six waves of the Household, Income and Labour Dynamics in Australia (HILDA) Survey, this study investigates the determinants of labour supply of married Australian women, with a focus on examining whether and to what extent there is state dependence in labour supply of married Australian women. It is found that observed and unobserv...

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