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Non‐Standard Time Wage Premiums and Employment Effects: Evidence from an Australian Natural Experiment

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  • Serena Yu
  • David Peetz

Abstract

We examine the effect of increasing Sunday wage premiums on retail industry employment in Australia, exploiting a quasi‐experimental policy change across two neighbouring states. Using both aggregate and individual‐level data, we adopt a difference‐in‐difference regression framework to estimate the causal impact of the policy change on employment outcomes. We find no evidence of changes in the total number of employees, and no effect on hours per employee in the years following the policy implementation. However, there appeared to be a decline in hours per employee in the announcement year of the policy change. Overall, it appears that in an industry dominated by part‐time and casual employment, any adjustment to the new Sunday wage rates occurred principally through flexibility in hours, rather than in the number of employees.

Suggested Citation

  • Serena Yu & David Peetz, 2019. "Non‐Standard Time Wage Premiums and Employment Effects: Evidence from an Australian Natural Experiment," British Journal of Industrial Relations, London School of Economics, vol. 57(1), pages 33-61, March.
    • Handle: RePEc:bla:brjirl:v:57:y:2019:i:1:p:33-61
    DOI: 10.1111/bjir.12412
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    Cited by:

    1. Sam Desiere & Christian Walker, 2023. "The Shift Premium: Evidence From A Discrete Choice Experiment," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 23/1074, Ghent University, Faculty of Economics and Business Administration.

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