Determining the labour force status of Aboriginal people using a multinomial logit model

Abstract

It is well documented that Aboriginal people are less likely to be in employment and more likely to be unemployed or not in the labour force than are other Australians. The aim of this paper is to consider some of the reasons for these differences in the statistical framework of a multinomial regression equation. Using 1986 Census data, results are presented for males and females on the effect of Aboriginality, education, age, family characteristics and location of residence on the probability of being in full-time employment, part-time employment, unemployment or not in the labour force. Major results include the negative effect of Aboriginality on the probability of being in full-time employment and the positive effect of more education on the probability of being in full-time employment. This latter result was particularly strong for Aboriginal women. These results will provide an important benchmark for comparing results from a similar exercise using 1991 Census data.