Do the determinants of employability and earnings returns produce similar outcomes in metropolitan and regional labour markets? : the case of New South Wales, Australia

Do the determinants of employability and earnings returns produce similar outcomes in metropolitan and regional labour markets? The case of New South Wales, Australia, Regional Studies. This paper analyses and compares the determinants of employability and earnings return outcomes in two diversified labour markets in Australia. Using advanced econometric techniques to analyse Confidentialised Unit Record Files (CURF) data from the 2006 Census, the paper identifies educational qualifications, broad occupational group, immigration status and age as the major determinants. In general, the metropolitan Sydney market places a greater value on higher education qualifications than do labour markets in the regions; immigrants, particularly from non-English speaking countries, are more likely to be disadvantaged in Sydney; and ageing provides a mixed impact in regional areas where on average older people work longer, but at lower wages.