Issue 2

MICHAEL P. CAMERON

Page Number - 153

This paper focuses on the spatial variation in the uptake of social security benefits following a large and detrimental exogenous shock. Specifically, we focus on the Global Financial Crisis (GFC) and on the onset of the COVID-19 pandemic. We construct a two-period panel of 66 Territorial Authorities (TAs) of New Zealand (NZ) observed in 2008-09 and 2019-20. We find that, despite the totally different nature of the two shocks, the initial increase in benefit uptake due to the COVID-19 pandemic was of a similar magnitude as that of the GFC, and the spatial pattern was also quite similar. We link the social security data with 146 indicator variables across 15 domains that were obtained from population censuses that were held about 2 years before the two periods. To identify urban characteristics that point to economic resilience, we formulate spatial panel regression models. Additionally, we use machine learning techniques. We find that the most resilient TAs had two years previously: (1) a low unemployment rate; and (2) a large public sector. Additionally, but with less predictive power, we find that TAs had a smaller increase in social security uptake after the shock when they had previously: (3) a high employment rate (or high female labour force participation rate); (4) a smaller proportion of the population stating ethnicities other than NZ European; (5) a smaller proportion of the population living in more deprived area units. We also find that interregional spillovers matter and that there are spatial clusters of resilient regions.

WILLIAM COCHRANE, JACQUES POOT, MATTHEW ROSKRUGE

Page Number - 155

Evidence from countries around the world suggests that rural-urban wage gaps are not solely explained by skill differences. Using data for Australia, the current study reaches the same conclusion; there is positive relationship between local economy size and local wages. Workers in Australian large urban centres earn around 7.5% more than workers with similar skill levels in rural areas. Urban Australians do not experience higher wage growth than rural Australians. Therefore, high wage growth in the year following rural-urban migration is most likely explained by the migrant taking jobs that below his ability upon arrival.

PHUONG HO

Page Number - 185

As in other countries, the incidence of COVID-19 and its infection rate is not the same in every area in Indonesia. In addition, the different local conditions and situations mean the policy action items often need to be adapted to these factors. This study aims to understand the impact of COVID-19 on Eastern Indonesia’s economy compared to other places in Indonesia and the contribution of their governments at provincial and district levels in terms of COVID-19 prevention and economic recovery effort. This study shows that remoteness has not excluded Eastern Indonesia from COVID-19 infection. Despite less requirement for the community to stay home, the mobility data shows that other activities such as retail, recreation, grocery shopping and park use still went down as much as in other parts of Indonesia. However, activities in workplaces dropped considerably less and allowed the economies in Eastern Indonesia to grow better than other areas during the pandemic.

YOGI VIDYATTAMA, MUHAMMAD HALLEY YUDHISTIRA, MEILA HUSNA

Page Number - 207

Uncertain post-pandemic population trends raise an interesting dilemma for regional governance authorities. Population stagnation afflicting non-metropolitan regions had been a familiar feature of Australian history. In recognition of its serious social and economic effects, population retention and growth have been familiar elements within the development strategies promulgated by regional governance authorities. Such was the case for South Australia’s Limestone Coast region. Unexpectedly, the coronavirus pandemic became associated with more favourable population-movement trends for many regions, including the Limestone Coast. In that region, there is an emerging sense that future strategic challenges may centre on the housing and infrastructure implications of a growing population rather than on the problem of a stagnant population. The strategic response of the region’s governance authorities is hampered by the uncertainty about whether the more favourable population trends will turn out to be a temporary or a more enduring phenomenon.

ANDREW PARKIN, LEONIE HARDCASTLE

Page Number - 234