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Workplace Characteristics and Their Effects on Wages: Australian Evidence

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  • Mark Wooden
  • Bijit Bora

Abstract

Using data, from the 1995 Australian Workplace Industrial Relations Survey, which match individual employees to the firms and workplaces at which they are employed, this paper examines the relative importance of both individual and workplace characteristics for wages. Results from the estimation of ‘effects’ models indicate that workplace‐specific effects are important, explaining 39 per cent of the variation in individual log hourly wages. Estimation of a model including both individual‐level and workplace‐level variables (and using a random effects approach) identified workplace size, foreign ownership, the significance of export markets, the gender composition of the workforce, workplace union organisation, the incidence of shift work, and location as the most important workplace‐level influences on wages.

Suggested Citation

  • Mark Wooden & Bijit Bora, 1999. "Workplace Characteristics and Their Effects on Wages: Australian Evidence," Australian Economic Papers, Wiley Blackwell, vol. 38(3), pages 276-289, September.
    • Handle: RePEc:bla:ausecp:v:38:y:1999:i:3:p:276-289
    DOI: 10.1111/1467-8454.00057
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    Cited by:

    1. Mark Wooden, 2001. "Union Wage Effects in the Presence of Enterprise Bargaining," The Economic Record, The Economic Society of Australia, vol. 77(236), pages 1-18, March.
    2. Michael Dobbie, 2005. "The insider-outsider theory: some evidence of Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(2), pages 181-201, June.
    3. Marie Drolet, 2002. "Can the Workplace Explain Canadian Gender Pay Differentials?," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 41-63, May.
    4. Dobbie, Michael, 2006. "Insider Power, Outsider Ineffectiveness and Product Market Competition: Evidence from Australia," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 2(1), pages 1-19.
    5. Zakariya, Zainizam, 2014. "Wage Effect of Over-Education and Mismatch in Malaysia: A Random Effect Approach," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 48(2), pages 3-17.

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