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Life on the Minimum Wage in Australia: An Empirical Investigation

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Author Info

  • Alfred Michael Dockery

    ()
    (Curtin University)

  • Richard Seymour

    (Curtin University)

  • Rachel Ong

    (Curtin University)

Abstract

From 2006 to 2009, Federal minimum wages in Australia were set by the Australian Fair Pay Commission. This paper uses data from the Household, Income and Labour Dynamics in Australia panel survey to investigate the circumstances of persons who are paid at or near the minimum wage, and thus potentially affected by the wage determinations. Net disposable incomes for actual and potential minimum wage workers are modelled in and out of work to investigate the implications of the wage determinations on work incentives. In addition, a range of measures of socioeconomic status and wellbeing are inspected. Comparisons are made with selected groups of non-employed persons and those with higher earnings to highlight the potential costs and benefits for affected individuals, and hence the potential trade-offs faced in setting minimum wages if we accept that increases in minimum wages reduce employment opportunities.

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Bibliographic Info

Article provided by Bankwest Curtin Economics Centre (BCEC), Curtin Business School in its journal Australian Journal of Labour Economics (AJLE).

Volume (Year): 13 (2010)
Issue (Month): 1 ()
Pages: 1-26

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Handle: RePEc:ozl:journl:v:13:y:2010:i:1:p:1-26

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Postal: GPO Box U1987, Perth WA 6845
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Web page: http://business.curtin.edu.au/research/publications/journals/ajle/
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Keywords: Labour Economics; Wages; Compensation; and Labor Costs; Public Policy;

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