“…These findings are also consistent with results obtained from reduced-form equations of the unemployment rate in structural labour market models (Pissarides, 1991, Huay and Groenewold, 1992, Scarpetta, 1996, Powell and Murphy, 1997, Debelle and Vickery, 1998, Downes and Bernie, 1999. Further support is provided by more descriptive work, which demonstrates that a common theme in papers on unemployment in Australia is that business cycle fluctuations and real wage growth are the two primary factors influencing Australian unemployment (Gregory, 2000, Le and Miller, 2000, Thomson, 2000, Borland, 1997, Goodridge, Harding, and Lloyd, 1995.…”